Stock Performance and Market Context
On 1 Feb 2026, Gujarat Hotels Ltd. recorded an intraday low of Rs.191.7, representing a sharp decline of 7.61% on the day. This drop contributed to a two-day consecutive fall, during which the stock lost 7.76% cumulatively. The day’s performance notably underperformed the Hotels & Resorts sector by 5.98%, signalling relative weakness within its industry peer group.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring a sustained bearish trend. This technical positioning suggests that short- and long-term momentum remain subdued.
Meanwhile, the broader market, represented by the Sensex, experienced a sharp reversal on the same day. After opening 119.19 points higher, the index fell by 955.52 points, closing at 81,433.45, down 1.02%. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for the overall market environment.
Long-Term Performance and Valuation Metrics
Over the past year, Gujarat Hotels Ltd. has delivered a negative return of 39.44%, significantly underperforming the Sensex, which posted a positive 6.15% return over the same period. The stock’s 52-week high was Rs.355, highlighting the extent of the decline from its peak.
Fundamental analysis reveals a weak long-term financial profile. The company’s average Return on Equity (ROE) stands at 9.60%, which is modest within the Hotels & Resorts sector. Despite this, the stock trades at a premium valuation with a Price to Book (P/B) ratio of 1.6, which is considered very expensive relative to its peers’ historical averages.
Interestingly, Gujarat Hotels has reported a 16.4% increase in profits over the past year, yet this has not translated into positive stock returns. The Price/Earnings to Growth (PEG) ratio is 0.8, indicating that earnings growth is not fully reflected in the current share price, but the overall market sentiment remains cautious.
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Recent Financial Results and Ratings Update
The company reported flat financial results for the quarter ended December 2025, which did little to alter the prevailing market sentiment. This stagnation in quarterly performance has contributed to the cautious stance among investors and analysts.
Reflecting these developments, Gujarat Hotels Ltd.’s Mojo Score currently stands at 16.0, with a Mojo Grade of Strong Sell as of 13 Jan 2026. This represents a downgrade from the previous Sell rating, signalling increased concerns about the stock’s outlook based on MarketsMOJO’s comprehensive evaluation framework.
The Market Cap Grade is rated at 4, indicating a relatively modest market capitalisation compared to larger peers, which may affect liquidity and investor interest.
Comparative Sector and Peer Analysis
In addition to underperforming the Sensex, Gujarat Hotels has lagged behind the BSE500 index over the last three years, one year, and three months. This consistent underperformance highlights challenges in maintaining competitive positioning within the Hotels & Resorts sector.
The stock’s valuation premium, despite subdued returns and modest ROE, suggests that market participants may be pricing in expectations that have yet to materialise. This disconnect between valuation and performance is a key factor in the current rating and price movement.
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Shareholding and Corporate Structure
The majority shareholding in Gujarat Hotels Ltd. remains with the promoters, who continue to hold significant control over the company’s strategic direction. This concentrated ownership structure is typical within the sector but may influence corporate governance and decision-making dynamics.
Given the current market valuation and performance metrics, the stock’s position at a 52-week low reflects a combination of valuation concerns, subdued returns, and broader sectoral pressures rather than isolated company-specific issues.
Summary of Key Metrics
To summarise, Gujarat Hotels Ltd. is trading at Rs.191.7, its lowest level in the past year, down from a 52-week high of Rs.355. The stock’s one-year return is -39.44%, contrasting with the Sensex’s positive 6.15% return. The company’s ROE averages 9.60%, while the P/B ratio stands at 1.6, indicating a premium valuation. The Mojo Grade has been downgraded to Strong Sell, reflecting increased caution based on fundamental and technical factors.
The stock’s underperformance relative to sector peers and broader market indices, combined with flat recent results and premium valuation, has contributed to its current price trajectory. Trading below all major moving averages further emphasises the prevailing downward momentum.
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