Howard Hotels Reports Flat Performance in Q2, But Strong Operating Cash Flow and Sales Growth Show Promise

Howard Hotels, a microcap company in the hotel, resort, and restaurant industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Howard Hotels has seen a flat performance in the second quarter of the fiscal year 2024-25. The company's score has fallen from 4 to 3 in the last three months. However, there are some positive aspects to the company's financials.

One of the highlights is the company's strong operating cash flow, which has been consistently growing over the past three years and is currently at Rs 2.23 crore annually. Additionally, the net sales for the first half of the year have shown a growth of 29.36% year on year, indicating a positive sales trend in the near term.

On the other hand, there are some areas of concern for Howard Hotels. The company's operating profit (PBDIT) for the quarter is at its lowest in the last five quarters, at Rs -0.53 crore. The same trend can be seen in the profit before tax (PBT) less other income, which is also at its lowest in the last five quarters, at Rs -0.82 crore. This has resulted in a decline in earnings per share (EPS) for shareholders, with the current quarter's EPS being the lowest in the last five quarters at Rs -0.88.

Overall, Howard Hotels has shown a mixed performance in the recent quarter, with some positive and negative aspects. Investors are advised to carefully consider these factors before making any investment decisions.