Benares Hotels Receives 'Buy' Rating from MarketsMOJO for Strong Financial Performance and Consistent Growth

Benares Hotels, a smallcap company in the hotel industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as the company has shown strong financial performance and positive results in the last 10 consecutive quarters.
One of the key factors contributing to the 'Buy' rating is the company's low Debt to Equity ratio, which is at an average of 0.04 times. This indicates a strong financial position and stability for the company. Additionally, Benares Hotels has seen a growth in Net Profit of 52.7% and has declared positive results for the last 10 quarters, showcasing its consistent performance.

The company's ROCE (HY) is at a high of 35.43%, and it has a significant amount of cash and cash equivalents at Rs 50.42 crore. Its net sales for the quarter are also at a high of Rs 35.58 crore. These factors, along with the stock being in a bullish range and showing improvement in technical trends, make it a favorable investment option.

Moreover, Benares Hotels has consistently outperformed BSE 500 in the last 3 annual periods and has generated a return of 155.91% in the last year. This showcases its strong performance and potential for growth.

However, there are some risks associated with investing in Benares Hotels. The company has a high ROE of 27.1, which makes its valuation very expensive with a 9 Price to Book Value. The stock is also trading at a premium compared to its historical valuations. Additionally, while the stock has shown a significant return in the last year, its profits have only risen by 54%, resulting in a PEG ratio of 0.6.

Another risk factor is that despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

In conclusion, Benares Hotels has shown strong financial performance and consistent returns, making it a 'Buy' according to MarketsMOJO. However, investors should also consider the risks associated with the stock before making any investment decisions.