Asian Hotels (North) Upgraded to 'Hold' by MarketsMOJO, Attractive Valuation and Promoter Confidence Boost Stock

Asian Hotels (North) has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO. The company, which operates in the hotel, resort, and restaurant industry, is classified as a microcap company. The technical trend for the stock has improved from mildly bullish to bullish on September 30, 2024, making it a good time to hold onto the stock.
One of the main reasons for the upgrade is the stock's attractive valuation. With a ROCE of 0.4 and an enterprise value to capital employed ratio of 1.2, the stock is trading at a discount compared to its average historical valuations. Additionally, the promoters of the company have shown high confidence in the future of the business by increasing their stake by 3.01% in the previous quarter.

In terms of performance, Asian Hotels (North) has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of 43.04% in the last year alone. However, the company has reported a decline in profits by -29.8% in the past year. This could be attributed to the company's high debt, with a debt-to-equity ratio of 6.29 times, indicating weak long-term fundamental strength.

Furthermore, the company has reported poor long-term growth, with net sales growing at an annual rate of 1.75% and operating profit at -152.96% over the last 5 years. The company has also reported negative ROE due to its losses. In the latest quarter, the company's results have remained flat.

Overall, while Asian Hotels (North) has shown promising performance in the short term and has the confidence of its promoters, its high debt and poor long-term growth may be a cause for concern. Investors are advised to hold onto the stock for now and keep an eye on its future performance.