Sayaji Hotels Receives 'Hold' Rating from MarketsMOJO, Shows Positive Growth in Recent Quarter

Sayaji Hotels, a microcap company in the hotel, resort, and restaurant industry, has recently received a 'Hold' rating from MarketsMOJO on November 22, 2024. This upgrade comes after the company reported positive results in September 2024, breaking a streak of five consecutive negative quarters.
The company's profits have shown significant growth, with a PAT (9M) of Rs 7.98 crore, a growth of 87.76%. Its operating cash flow has also reached its highest at Rs 47.62 crore, while its net sales for the quarter have grown by 27.69% to Rs 28.13 crore.

Technically, the stock is in a mildly bullish range, with indicators such as MACD, Bollinger Band, and KST showing bullish signals. Additionally, with a ROCE of 11.6, the stock is attractively valued with a 3.1 enterprise value to capital employed.

However, there are some concerns regarding the company's long-term fundamentals. Its average ROCE of 8.57% and negative growth in net sales over the past five years (-12.82%) indicate weak long-term strength. The company also has a high debt to EBITDA ratio of 3.50 times, indicating a low ability to service debt.

It is worth noting that despite being a microcap company, domestic mutual funds hold only 0.09% of Sayaji Hotels. This could suggest that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while the stock has generated a return of 28.37% in the past year, its profits have declined by -9.1%. Investors should carefully consider these factors before making any investment decisions.