Benares Hotels Receives 'Hold' Rating from MarketsMOJO, Shows Consistent Positive Results and Bullish Technical Trend

Benares Hotels, a smallcap company in the hotel, resort, and restaurant industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown consistent positive results for the past 11 quarters, with a high operating cash flow of Rs 40.55 crore and a 29.73% growth in profits. Additionally, the company's return on capital employed (ROCE) is at its highest at 35.43%.
Technically, the stock is in a mildly bullish range and has shown improvement from a sideways trend on 14-Oct-24. The MACD and Bollinger Band technical factors also indicate a bullish trend. Over the last 3 years, the stock has consistently outperformed the BSE 500 index and has generated a return of 59.04% in the last year alone.

However, with a price to book value of 9.1 and a ROE of 27.2, the stock is currently trading at a premium compared to its historical valuations. This may be a concern for some investors, as the PEG ratio of the company is 0.8. It is important to note that despite its positive performance, domestic mutual funds hold only 0% of the company, which could indicate a lack of confidence in the stock or the business.

Overall, while Benares Hotels has shown strong financial performance and a bullish technical trend, its expensive valuation and lack of interest from domestic mutual funds may be a cause for concern. Investors should carefully consider these factors before making any investment decisions.