Stock Price Movement and Market Context
On 13 February 2026, Gujarat Hotels Ltd. recorded a day change of -6.09%, underperforming the broader market indices despite a slight outperformance relative to its sector by 1.31%. The stock has experienced a brief recovery after two consecutive days of decline, yet it remains trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness in technical indicators underscores the stock’s subdued momentum.
Meanwhile, the Sensex opened lower by 772.19 points and was trading at 82,852.90, down 0.98% on the day. The benchmark index remains 3.99% below its 52-week high of 86,159.02, with the 50-day moving average positioned above the 200-day moving average, signalling a mixed technical backdrop for the broader market.
Performance Over the Past Year
Gujarat Hotels Ltd. has delivered a negative return of -36.37% over the last twelve months, a stark contrast to the Sensex’s positive 8.80% gain during the same period. The stock’s 52-week high was Rs 355, highlighting the extent of the decline from its peak. This underperformance is further emphasised by the company’s lagging returns relative to the BSE500 index over one year, three years, and the last three months.
Financial Metrics and Valuation
The company’s long-term fundamental strength remains weak, with an average Return on Equity (ROE) of 9.60%. Despite this, the most recent reported ROE stands at 11.5, which, combined with a Price to Book Value ratio of 1.5, places Gujarat Hotels Ltd. in a relatively expensive valuation bracket compared to its peers’ historical averages. The Price to Earnings to Growth (PEG) ratio is 0.8, indicating that while profits have increased by 16.4% over the past year, the stock price has not reflected this growth adequately.
Results for the quarter ending December 2025 were largely flat, offering limited impetus for a turnaround in investor sentiment. The company’s market capitalisation grade is rated 4, reflecting modest size and liquidity considerations within the mid-cap segment.
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Sector and Shareholding Structure
Operating within the Hotels & Resorts industry, Gujarat Hotels Ltd. faces sector-specific headwinds that have contributed to its subdued performance. The company’s majority shareholding is held by promoters, which provides a degree of ownership stability but has not translated into improved market performance in recent periods.
Rating and Market Sentiment
MarketsMOJO currently assigns Gujarat Hotels Ltd. a Mojo Score of 16.0, categorising it as a Strong Sell. This rating was upgraded from Sell on 13 January 2026, reflecting a deterioration in the company’s outlook based on fundamental and technical factors. The downgrade is influenced by the company’s weak long-term fundamentals, expensive valuation relative to peers, and persistent underperformance in stock returns.
Technical and Trend Analysis
The stock’s position below all major moving averages signals a bearish trend, with no immediate technical support evident above the current price levels. Although there was a minor gain following two days of decline, the overall trend remains downward. This technical weakness is compounded by the broader market’s cautious stance, as indicated by the Sensex’s negative movement on the same day.
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Summary of Key Metrics
To summarise, Gujarat Hotels Ltd. is currently trading near its 52-week low of Rs 189.95, down significantly from its 52-week high of Rs 355. The stock’s one-year return of -36.37% contrasts sharply with the Sensex’s positive 8.80% performance. The company’s valuation metrics, including a Price to Book Value of 1.5 and a PEG ratio of 0.8, suggest a premium pricing despite weak returns. The Mojo Grade of Strong Sell and a score of 16.0 reflect the prevailing cautious sentiment.
While profits have increased by 16.4% over the past year, this has not been sufficient to reverse the stock’s downward trajectory. The flat quarterly results and the stock’s position below all major moving averages further reinforce the current subdued outlook.
Conclusion
Gujarat Hotels Ltd.’s recent decline to a 52-week low highlights ongoing challenges in the Hotels & Resorts sector and the company’s relative underperformance. The combination of weak long-term fundamentals, expensive valuation metrics, and technical weakness has contributed to the stock’s current position. Market participants will continue to monitor the company’s financial results and sector developments as indicators of potential shifts in performance.
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