MarketsMOJO downgrades Advani Hotels & Resorts (India) to 'Sell' due to poor long-term growth and negative results

Advani Hotels & Resorts (India) is a microcap company in the hotel, resort, and restaurant industry. Recently, MarketsMOJO downgraded their stock call to 'Sell' on September 19, 2024. This decision was based on the company's poor long-term growth, with net sales only growing at an annual rate of 7.78% over the last 5 years.
In addition, the company has declared negative results in June 2024 after two consecutive positive quarters. Their PBT LESS OI(Q) has fallen by -49.9%, PAT(Q) has fallen by -42.1%, and NET SALES(Q) has fallen by -16.3%. This has resulted in a ROE of 33.3 and an expensive valuation with a 9.4 Price to Book Value. However, the stock is currently trading at a fair value compared to its average historical valuations.

Despite the company's small size, domestic mutual funds only hold a 0.1% stake in the company. This could indicate that they are not comfortable with the current price or the business itself. On the other hand, the company has a low Debt to Equity ratio (avg) at 0 times and is technically in a Mildly Bullish range. The stocks MACD and KST technical factors are also Bullish.

In terms of market performance, Advani Hotels & Resorts (India) has outperformed the market (BSE 500) with a return of 65.17% in the last year. This is significantly higher than the market's returns of 34.74%. However, it is important to note that the company's profits have fallen by -9.5% during this time.

Overall, while Advani Hotels & Resorts (India) may have some positive technical factors and a low Debt to Equity ratio, the company's poor long-term growth and recent negative results may be cause for concern. Investors should carefully consider all factors before making any decisions regarding this microcap company.