MarketsMOJO Upgrades Howard Hotels to 'Hold' Rating Amid Bullish Trend and Attractive Valuation

Howard Hotels, a microcap company in the hotel industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved from a mildly bullish status on August 19, 2024. The company's technical indicators, such as MACD, Bollinger Band, and KST, are all pointing towards a positive outlook.
One of the main 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 1.9, the stock is trading at a discount compared to its historical valuations. However, it is important to note that while the stock has generated a return of 48.35% in the past year, its profits have declined 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 consistently outperformed the BSE 500 index in the last 3 annual periods, further adding to its appeal.

However, there are some concerns regarding the company's long-term fundamental strength. With operating losses and poor long-term growth in net sales, Howard Hotels may not be a strong performer in the long run. Additionally, its ability to service its debt is weak, with a poor EBIT to interest ratio of -0.27.

In the latest quarter, the company's results were flat, with PBDIT(Q) at its lowest at Rs -0.50 cr, PBT LESS OI(Q) at Rs -0.79 cr, and EPS(Q) at Rs -0.85. This indicates that the company may be facing some challenges in its operations.

Overall, while Howard Hotels may have some potential for short-term gains, it is important for investors to carefully consider the company's long-term prospects before making any investment decisions.