Stock Price Movement and Market Context
On 2 December 2025, Oriental Hotels recorded its lowest price in the last 52 weeks at Rs.113.55. This price point reflects a notable contraction from its 52-week high of Rs.202, indicating a substantial downward trend over the period. Despite this low, the stock showed a modest recovery today, gaining 0.30%, which outperformed the Hotels & Resorts sector by 0.53%. However, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained pressure on the share price.
Meanwhile, the broader market, represented by the Sensex, opened lower by 316.39 points and was trading at 85,265.13, down 0.44%. The Sensex remains close to its 52-week high of 86,159.02, just 1.05% away, and is supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average. This contrast highlights the relative underperformance of Oriental Hotels compared to the overall market.
Performance Metrics Over the Past Year
Oriental Hotels has experienced a return of -36.19% over the last 12 months, a figure that contrasts sharply with the Sensex’s positive 6.25% return during the same period. This underperformance extends beyond the one-year horizon, with the stock also lagging behind the BSE500 index over the last three years, one year, and three months. Such trends indicate persistent challenges in maintaining competitive momentum within the Hotels & Resorts sector.
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Financial Ratios and Operational Indicators
Recent half-yearly data reveals several key ratios that provide insight into the company’s current financial position. The inventory turnover ratio stands at 3.72 times, which is comparatively low and suggests slower movement of stock relative to peers. The debt-equity ratio is reported at 1.64 times, indicating a higher reliance on debt financing. Additionally, the debtors turnover ratio is at 1.38 times, reflecting a slower collection cycle for receivables.
These ratios collectively point to areas where the company’s efficiency and capital structure may be under strain, contributing to the subdued stock performance. The flat results reported in September 2025 further underscore the challenges faced in generating significant growth in the near term.
Long-Term Growth and Valuation Metrics
Despite recent setbacks, Oriental Hotels has demonstrated a compound annual growth rate of 34.50% in operating profit over the longer term. This growth rate indicates that the company has been able to expand its core earnings base over time. The return on capital employed (ROCE) is recorded at 10.5%, which is a moderate level of capital efficiency within the Hotels & Resorts sector.
From a valuation perspective, the enterprise value to capital employed ratio is 2.6, suggesting that the stock is trading at a discount relative to its peers’ historical averages. The company’s profits have risen by 17% over the past year, even as the stock price declined, resulting in a price/earnings to growth (PEG) ratio of 2.5. This divergence between profit growth and share price performance highlights a disconnect that may be influenced by broader market sentiment and sector-specific factors.
Shareholding and Market Position
Promoters remain the majority shareholders of Oriental Hotels, maintaining significant control over the company’s strategic direction. The Hotels & Resorts sector continues to face a range of macroeconomic and industry-specific pressures, which have impacted Oriental Hotels alongside its competitors.
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Summary of Current Position
Oriental Hotels’ stock performance over the past year reflects a combination of subdued market sentiment and specific financial indicators that have weighed on investor confidence. The stock’s position below all major moving averages and its new 52-week low price of Rs.113.55 illustrate the challenges faced in regaining upward momentum. While the company’s operating profit growth and valuation metrics offer some context for its underlying business strength, the prevailing market conditions and sector dynamics continue to influence its share price trajectory.
Investors and market participants will likely continue to monitor these factors closely as the company navigates its current phase within the Hotels & Resorts industry.
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