Royal Orchid Hotels Receives 'Hold' Rating from MarketsMOJO, Attractive Valuations and Institutional Interest

Royal Orchid Hotels, a smallcap company in the hotel industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical indicators, such as the stock being in a bullish range and improvements in its technical trend. Additionally, the company has attractive valuations with a ROCE of 19.9 and a discount compared to its historical valuations.
Institutional investors have also shown interest in the company, with a 0.8% increase in their stake in the previous quarter. This is a positive sign as these investors have better resources to analyze company fundamentals.

Royal Orchid Hotels has consistently outperformed the BSE 500 index in the last 3 years, with a return of 55.47%. However, the company's long-term fundamental strength is weak, with an average ROCE of 7.73% and poor growth in net sales over the last 5 years. The company also has a weak ability to service its debt, with a low EBIT to Interest ratio.

In the latest quarter, the company's results were flat, indicating a need for improvement in its operations. Overall, while the stock may have potential for short-term gains, its long-term fundamentals need to be closely monitored. Investors are advised to hold their positions for now.