Stock Performance and Market Context
On 8 December 2025, Oriental Hotels recorded its lowest price in the past year at Rs.110.35. This level represents a notable drop from its 52-week high of Rs.202, reflecting a downward trend over the last twelve months. The stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained weakness in price momentum.
In the last two trading sessions, Oriental Hotels has experienced a cumulative decline of approximately 2.17%, with today's session alone showing a 2.45% fall. This underperformance extends to the sector level, where the stock lagged the Hotels & Resorts sector by 1.52% today.
Meanwhile, the broader market index, Sensex, opened flat but moved into negative territory, trading at 85,417.69 points, down 0.34% from the previous close. Despite this, Sensex remains close to its 52-week high, just 0.87% shy of the peak at 86,159.02, and is supported by bullish moving averages with the 50-day DMA positioned above the 200-day DMA.
Financial Metrics Reflecting Current Challenges
Oriental Hotels’ financial indicators reveal areas of concern that have contributed to the stock’s subdued performance. The company’s inventory turnover ratio for the half-year period stands at 3.72 times, which is comparatively low and suggests slower movement of inventory. Additionally, the debt-equity ratio is at 1.64 times, indicating a relatively high level of leverage on the balance sheet.
The debtor turnover ratio, measuring the efficiency of receivables collection, is reported at 1.38 times for the half-year, also on the lower side. These ratios collectively point to pressures on working capital management and financial structure.
Over the past year, Oriental Hotels has generated a return of -44.40%, a stark contrast to the Sensex’s positive 4.53% return over the same period. This divergence highlights the stock’s underperformance relative to the broader market and its sector peers.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Long-Term and Recent Financial Trends
Despite the recent price decline, Oriental Hotels has demonstrated growth in operating profit, which has expanded at an annual rate of 34.50%. This suggests that the company’s core business activities have shown improvement over the longer term.
The return on capital employed (ROCE) stands at 10.5%, reflecting the efficiency with which the company utilises its capital base to generate earnings. Furthermore, the enterprise value to capital employed ratio is 2.5, indicating a valuation level that is comparatively attractive when viewed against historical averages of peer companies.
Profit growth over the past year has been recorded at 17%, even as the stock price has declined. The price/earnings to growth (PEG) ratio is 2.4, which provides a measure of valuation relative to earnings growth.
Shareholding and Sectoral Positioning
Promoters remain the majority shareholders of Oriental Hotels, maintaining significant control over the company’s strategic direction. The stock is part of the Hotels & Resorts industry and sector, which has experienced mixed performance amid varying market conditions.
Over the last three years, Oriental Hotels has underperformed the BSE500 index across multiple time frames, including the one-year and three-month periods, underscoring the challenges faced by the company in delivering returns comparable to broader market benchmarks.
Holding Oriental Hotels from Hotels & Resorts? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Current Market Standing
Oriental Hotels’ stock price reaching Rs.110.35 marks a significant milestone as the lowest level in the past year. The stock’s performance has been subdued relative to the broader market and sector indices, with key financial ratios reflecting areas of caution. While operating profit growth and capital efficiency metrics provide some positive context, the overall market assessment remains cautious given the stock’s recent price trajectory and comparative returns.
Trading below all major moving averages and with a recent downward trend over consecutive sessions, Oriental Hotels is currently positioned at a valuation discount relative to its peers’ historical averages. The company’s financial structure and turnover ratios highlight ongoing considerations for stakeholders analysing its market position.
Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
