MarketsMOJO Upgrades Howard Hotels to 'Hold' Rating Based on Technical Factors and Attractive Valuation

Howard Hotels, a microcap company in the hotel, resort, and restaurant industry, has recently received a 'Hold' rating from MarketsMOJO on September 5th, 2024. This upgrade is based on various technical factors, such as the stock being in a bullish range and improvements in the technical trend.
One of the main reasons for the 'Hold' rating is the stock's attractive valuation, with a ROCE of 9 and a 2 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 99.10% in the past year, its profits have fallen by -101.7%.

The majority shareholders of Howard Hotels are the promoters, which can provide stability and confidence in the company's future. The company has also shown consistent returns over the last 3 years, outperforming the BSE 500 index.

On the other hand, the company's long-term fundamental strength is weak, with operating losses and poor growth in net sales over the last 5 years. Additionally, the company's ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of -0.27.

In the latest quarter, the company's results were flat, with PBDIT(Q) at its lowest at Rs -0.50 cr, PBT LESS OI(Q) at Rs -0.79 cr, and EPS(Q) at Rs -0.85. This indicates a need for improvement in the company's financial performance.

Overall, while Howard Hotels may have some positive aspects, it is important for investors to carefully consider all factors before making any investment decisions. The 'Hold' rating from MarketsMOJO suggests a neutral stance on the stock, and investors should do their own research and analysis before making any decisions.