Recent Price Movement and Market Context
On 1 December 2025, Gujarat Hotels recorded an intraday low of Rs.196.1, representing an 8.64% drop from its previous levels. The stock also touched an intraday high of Rs.227.85, reflecting a 6.15% rise during the trading day, but ultimately closed lower, continuing a three-day downward trend. Over this period, the stock has delivered a cumulative return of -7.34%, underperforming the Hotels & Resorts sector by 4.07% on the day.
Volatility has been elevated, with an intraday weighted average price volatility of 7.49%, indicating significant price fluctuations within the trading session. Gujarat Hotels is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
Comparison with Broader Market Indices
The broader market, represented by the Sensex, opened positively with a gain of 359.25 points but reversed course to close down by 424.02 points, or 0.08%, at 85,641.90. The Sensex remains close to its 52-week high of 86,055.86, trading just 0.48% below that peak. Notably, the Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, reflecting a generally bullish trend in the broader market.
Small-cap stocks led the market gains with the BSE Small Cap index rising by 0.05%, contrasting with the underperformance of Gujarat Hotels, which is classified within the Hotels & Resorts sector.
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Long-Term Performance and Valuation Metrics
Over the past year, Gujarat Hotels has recorded a total return of -9.17%, contrasting with the Sensex’s positive return of 7.32% during the same period. The stock’s 52-week high stands at Rs.375, highlighting the extent of the recent price decline.
Financially, the company’s return on equity (ROE) averages at 9.60%, indicating modest profitability relative to shareholders’ funds. Over the last five years, net sales have grown at an annualised rate of 14.41%, while operating profit has expanded at 15.47% annually. Despite these growth rates, the valuation metrics suggest a premium positioning, with a price-to-book value ratio of 1.6, which is higher than the average historical valuations of its peers.
Recent Financial Results and Profitability
In the most recent quarter ending September 2025, Gujarat Hotels reported flat financial results, with no significant changes in key performance indicators. The company’s profits have shown a rise of 30.8% over the past year, yet this has not translated into positive stock returns. The price-to-earnings-to-growth (PEG) ratio stands at 0.5, reflecting the relationship between earnings growth and valuation.
Debt levels remain minimal, with an average debt-to-equity ratio of zero, indicating a capital structure free from long-term borrowings. Promoters continue to hold the majority stake in the company, maintaining control over strategic decisions.
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Sector and Peer Comparison
Within the Hotels & Resorts sector, Gujarat Hotels’ recent price performance has lagged behind sector averages and broader market indices. The stock’s trading below all major moving averages contrasts with the Sensex’s bullish positioning, underscoring the divergence in performance.
While the company has demonstrated steady growth in sales and operating profit over the medium term, the stock’s valuation and price trends suggest cautious market sentiment. The premium price-to-book ratio relative to peers may reflect expectations embedded in the stock price, despite the subdued returns over the past year.
Summary of Key Price and Financial Indicators
• New 52-week low: Rs.196.1
• Intraday high on 1 December 2025: Rs.227.85
• Three-day cumulative return: -7.34%
• One-year stock return: -9.17%
• Sensex one-year return: 7.32%
• Return on equity (average): 9.60%
• Price-to-book value: 1.6
• Debt-to-equity ratio (average): 0.0
• Net sales growth (5-year CAGR): 14.41%
• Operating profit growth (5-year CAGR): 15.47%
Gujarat Hotels’ stock price reaching a new 52-week low of Rs.196.1 highlights the challenges faced by the company in maintaining market valuation amid sector and broader market dynamics. The stock’s performance contrasts with the overall market’s positive trends, reflecting specific company-level factors and valuation considerations.
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