Lords Ishwar Hotels Shows Mixed Performance Amidst Technical Indicators and Financial Challenges

Lords Ishwar Hotels, a microcap player in the hotel, resort, and restaurant industry, has shown a mixed performance in recent months. The stock is currently positioned within a bullish range, reflecting an improvement in its technical trend. Despite generating a return of 32.63% over the past year, the stock has experienced a decline of 24.21% since mid-December 2024.
Financially, the company boasts a Return on Capital Employed (ROCE) of 8.1, indicating an attractive valuation with an enterprise value to capital employed ratio of 2.3. However, its long-term fundamental strength appears weak, with an average ROCE of just 1.92%. Over the last five years, net sales have contracted at an annual rate of 1.04%, while operating profit has grown modestly at 2.83%.

The company’s ability to service debt is also a concern, as evidenced by a high debt to EBITDA ratio of 3.02 times. Despite these challenges, Lords Ishwar Hotels has consistently outperformed the BSE 500 index over the past three years, with majority ownership held by promoters.