MarketsMOJO Upgrades Asian Hotels (East) to 'Hold' Following Strong Financial Performance

Asian Hotels (East) is a microcap company in the hotel industry. Recently, MarketsMOJO has upgraded its stock call to 'Hold' on July 9, 2024. This upgrade is based on the company's low Debt to Equity ratio of 0.02 times, indicating a healthy financial position. Additionally, the company has shown a strong long-term growth with an annual rate of 173.31% in operating profit.
In the recent quarter, Asian Hotels (East) has declared positive results after two consecutive negative quarters. The company's net sales were at its highest at Rs 33.61 crore and PBDIT at Rs 13.22 crore. The operating profit to net sales ratio was also at its highest at 39.33%. This shows a positive trend in the company's performance.

Moreover, with a ROCE of 4.8, the company has a very attractive valuation with a 1 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 16.16%, while its profits have risen by 63.3%. This gives the company a PEG ratio of 0.2, indicating a potential for future growth.

The majority shareholders of Asian Hotels (East) are the promoters, which shows their confidence in the company's performance. However, the stock is currently in a mildly bearish range and its technical factors such as MACD and Bollinger Band are also bearish. It has also underperformed the market in the last year, with a return of 16.16% compared to the market's return of 38.60%.

In conclusion, while Asian Hotels (East) has shown positive results and has a strong financial position, its stock is currently in a bearish range. Investors may consider holding onto the stock for potential future growth, but should also keep an eye on its technical factors and market performance.