Oriental Hotels Receives 'Hold' Rating from MarketsMOJO, Technical Trends Improve 7.13% Since September.

Oriental Hotels, a smallcap company in the hotel, resort, and restaurant industry, has recently received a 'Hold' rating from MarketsMOJO on October 17, 2024. This upgrade is based on the stock's technical trend, which has improved from Mildly Bullish to Bullish, generating a return of 7.13% since September 4, 2024. Additionally, the MACD and KST technical factors are also showing a Bullish trend.
The majority shareholders of Oriental Hotels are the promoters, indicating their confidence in the company. The stock has consistently outperformed the BSE 500 index in the last 3 years, with a return of 68.77% in the last year alone.

However, the company's management efficiency is a cause for concern, with a low Return on Capital Employed (ROCE) of 5.49%. This signifies a low profitability per unit of total capital, including equity and debt. The company's ability to service its debt is also weak, with a poor EBIT to Interest ratio of 1.59.

Moreover, Oriental Hotels has shown poor long-term growth, with a net sales growth rate of only 4.37% over the last 5 years. The Return on Equity (ROE) is also low at 4.20%, indicating a low profitability per unit of shareholders' funds.

In the latest financial results for September 2024, the company has reported negative results, with a -62.93% growth in profits and a ROCE of 8.67%. The cash and cash equivalents have also decreased to Rs 9.40 crore.

With a ROCE of 7.6, Oriental Hotels is currently trading at an expensive valuation, with an Enterprise value to Capital Employed ratio of 4. However, the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 68.77% in the past year, the company's profits have declined by -12%.

Overall, while Oriental Hotels has shown promising technical trends and consistent returns, its management efficiency and long-term growth are areas of concern. Investors may want to hold onto their positions for now and monitor the company's performance closely.