MarketsMOJO downgrades Howard Hotels to 'Sell' due to weak fundamentals and debt concerns

Howard Hotels, a microcap company in the hotel industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with operating losses and poor growth in net sales over the last 5 years. Additionally, Howard Hotels has a weak ability to service its debt, with a poor EBIT to Interest ratio.
In the most recent quarter, the company's results were flat with the lowest PBDIT and PBT LESS OI. The EPS was also at its lowest at Rs -0.85. However, there are some positive technical factors for the stock, as it is currently in a mildly bullish range and the MACD and KST indicators are also bullish.

Despite these technical factors, Howard Hotels has an attractive valuation with a ROCE of 9 and a 1.8 Enterprise value to Capital Employed. The stock is also trading at a discount compared to its historical valuations. However, over the past year, while the stock has generated a return of 56.68%, its profits have fallen by -101.7%.

The majority shareholders of Howard Hotels are the promoters, and the company has consistently generated returns over the last 3 years. In fact, it has outperformed the BSE 500 index in each of the last 3 annual periods. While the stock may have some positive aspects, the overall outlook for Howard Hotels is currently not favorable, leading to the 'Sell' rating from MarketsMOJO.