MarketsMOJO Upgrades Asian Hotels (East) to 'Hold' on Strong Financials and Growth Potential

Asian Hotels (East) is a microcap company in the hotel industry. Recently, MarketsMOJO has upgraded its stock call to 'Hold' on August 1, 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 operating profit growth rate of 173.31%.
In the recent quarter, the company has declared positive results after two consecutive negative quarters. Its Profit After Tax (HY) has grown by 95.81% at Rs 21.03 crore and its Net Sales (HY) has grown by 21.79% at Rs 65.79 crore. The company's PBDIT (Q) has also reached its highest at Rs 13.22 crore. With a ROCE of 4.8, the company has a very attractive valuation with a 1 Enterprise value to Capital Employed.

Moreover, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 10.44%, its profits have risen by 63.3%. This indicates a low PEG ratio of 0.2 for the company. The majority shareholders of Asian Hotels (East) are its promoters.

However, the stock is currently in a Mildly Bearish range and its technical factors such as MACD and KST are also Bearish. It has also underperformed the market in the last year with a return of 10.44%, much lower than the market (BSE 500) returns of 37.25%.

In conclusion, MarketsMOJO has upgraded the stock call for Asian Hotels (East) to 'Hold' based on its strong financial position and long-term growth potential. However, investors should also consider the current technical factors and underperformance of the stock in the market before making any investment decisions.