Howard Hotels Receives 'Hold' Rating from MarketsMOJO, Technical Indicators Show Bullish Trend

Howard Hotels, a microcap company in the hotel, resort, and restaurant industry, has recently received a 'Hold' rating from MarketsMOJO on October 7, 2024. This upgrade is based on various technical indicators that show the stock is currently in a bullish range. Since September 5, 2024, the stock has generated a return of 5.66%.
One of the reasons for the 'Hold' rating is the company's attractive valuation with a ROCE of 9 and an enterprise value to capital employed ratio of 2.1. Additionally, the stock is currently trading at a discount compared to its historical valuations. However, it is important to note that while the stock has generated a return of 85.06% in the past year, its profits have fallen by -101.7%.

The majority shareholders of Howard Hotels are the promoters, which can be seen as a positive sign for investors. The company has also shown consistent returns over the last 3 years, outperforming the BSE 500 index.

On the other hand, the company's long-term fundamental strength is weak due to operating losses and poor growth in net sales over the last 5 years. Furthermore, the company's ability to service its debt is also weak, with a poor EBIT to interest ratio of -0.27.

In the most recent quarter, the company's results were flat with a PBDIT of -0.50 cr and a PBT less OI of -0.79 cr. The EPS for the quarter was also at its lowest at Rs -0.85.

Overall, while the technical indicators show a bullish trend for Howard Hotels, the company's long-term fundamental strength and recent financial results suggest a cautious approach. Investors may want to hold onto their current positions and monitor the company's performance closely before making any further investment decisions.