Stock Price Movement and Volatility
On the day in question, Asian Hotels (North) Ltd exhibited notable volatility, with an intraday high of Rs.295 and a low of Rs.258, representing a 10.25% drop from the previous close. The weighted average price volatility stood at 6.98%, underscoring the stock’s unsettled trading environment. The share price has declined by 11.29% on the day, underperforming the Hotels & Resorts sector by 9.02%.
Over the last two trading days, the stock has recorded a cumulative loss of 13.78%, continuing a downward trajectory that has seen it breach multiple moving averages. Currently, Asian Hotels (North) Ltd is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained bearish momentum.
Comparative Market Context
While Asian Hotels (North) Ltd has been under pressure, the broader market has shown relative resilience. The Sensex opened 772.19 points lower and was trading at 82,733.09, down 1.13% on the day, yet remains within 4.14% of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a generally positive medium-term trend for the benchmark index.
In contrast, Asian Hotels (North) Ltd’s 1-year performance has been markedly weaker, with a negative return of 28.37%, compared to the Sensex’s positive 8.65% return over the same period. The stock’s 52-week high was Rs.403.65, highlighting the extent of its decline.
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Financial Performance and Fundamental Metrics
Asian Hotels (North) Ltd’s financial indicators reflect ongoing challenges. The company reported a Profit Before Tax (PBT) of negative Rs.25.66 crores in the latest quarter, representing an 88.5% decline compared to the previous four-quarter average. This substantial reduction in profitability has contributed to a negative Return on Equity (ROE), signalling diminished shareholder returns.
The company’s debt profile remains elevated, with an average Debt to Equity ratio of 5.29 times, categorising it as a high-debt entity. This leverage level weighs on the company’s financial flexibility and increases interest obligations. Correspondingly, the Operating Profit to Interest ratio for the quarter was recorded at a low of -0.14 times, indicating that operating profits are insufficient to cover interest expenses.
Inventory turnover for the half-year period stood at 23.23 times, the lowest in recent assessments, suggesting slower asset utilisation relative to peers. Despite these headwinds, the company’s Return on Capital Employed (ROCE) was measured at 5.2%, which is considered fair, and the Enterprise Value to Capital Employed ratio was 2.3, indicating a valuation discount compared to sector averages.
Sector and Market Underperformance
Asian Hotels (North) Ltd’s underperformance is further highlighted by its relative returns against the BSE500 index, which generated 11.26% returns over the past year. The stock’s negative 28.37% return contrasts sharply with the broader market’s gains, underscoring sector-specific and company-specific pressures.
While the Hotels & Resorts sector has faced headwinds, Asian Hotels (North) Ltd’s performance has lagged even within this context. The stock’s Mojo Score currently stands at 12.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 22 Sep 2025. The Market Cap Grade is 4, reflecting its mid-tier capitalisation status within the sector.
Valuation and Profitability Trends
Despite the share price decline, the company’s profits have shown a 67.8% increase over the past year, a factor that contrasts with the stock’s negative price performance. This divergence suggests that market sentiment and financial metrics are not fully aligned, possibly due to concerns over leverage and cash flow adequacy.
The stock is currently trading at a discount relative to its peers’ historical valuations, which may reflect the market’s cautious stance given the company’s financial structure and recent results.
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Summary of Key Metrics
To summarise, Asian Hotels (North) Ltd’s key financial and market metrics as of 13 Feb 2026 are:
- New 52-week low price: Rs.258
- Day’s price change: -11.29%
- Consecutive two-day decline: -13.78%
- Debt to Equity ratio (average): 5.29 times
- Profit Before Tax (latest quarter): -Rs.25.66 crores (-88.5% vs previous 4Q average)
- Operating Profit to Interest ratio (quarter): -0.14 times
- Inventory Turnover ratio (half-year): 23.23 times
- Return on Capital Employed (ROCE): 5.2%
- Mojo Score: 12.0 (Strong Sell)
- Market Cap Grade: 4
- 1-year stock return: -28.37%
- 1-year profit growth: +67.8%
Conclusion
Asian Hotels (North) Ltd’s fall to a 52-week low of Rs.258 reflects a combination of financial strain, high leverage, and market underperformance relative to both sector peers and broader indices. The stock’s current valuation discounts and negative returns over the past year highlight the challenges faced by the company within the Hotels & Resorts sector. While profitability has improved, the elevated debt levels and recent quarterly losses continue to weigh on the share price and investor sentiment.
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