Royale Manor Hotels & Industries Ltd Falls to 52-Week Low Amidst Continued Downtrend

Stock Price Movement and Market Context

On 2 Feb 2026, Royale Manor Hotels & Industries Ltd’s share price touched an intraday low of Rs.30.51, representing a sharp fall of 9.63% on the day and an overall decline of 8.03% compared to the previous close. This drop extended the stock’s losing streak to two consecutive days, during which it has shed 10.29% in value. The stock’s volatility was notably high, with an intraday weighted average price volatility of 5.04%, reflecting increased trading fluctuations.

The stock’s performance today lagged behind its sector peers, underperforming the Hotels & Resorts sector by 7.04%. Royale Manor 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.

In the broader market, the Sensex opened lower by 167.26 points and was trading at 80,532.41, down 0.24%. The index itself is positioned below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals. Other indices such as the S&P BSE FMCG and NIFTY FMCG also hit new 52-week lows on the same day, highlighting sectoral pressures.

Long-Term Performance and Valuation Metrics

Over the past year, Royale Manor Hotels & Industries Ltd has delivered a negative return of 25.72%, substantially underperforming the Sensex, which posted a positive 3.92% return over the same period. The stock’s 52-week high was Rs.63.99, underscoring the extent of the recent decline.

The company’s valuation metrics remain a point of concern. Despite the weak price performance, the stock trades at a premium with a Price to Book Value of 1.1, which is considered expensive relative to its peers’ historical averages. This premium valuation is notable given the company’s subdued financial performance.

Financial and Operational Indicators

Royale Manor’s long-term fundamental strength is assessed as weak, with an average Return on Capital Employed (ROCE) of 4.61%. Over the last five years, the company’s net sales have grown at an annual rate of 10.69%, while operating profit has increased at a slower pace of 9.04%. These growth rates are modest within the Hotels & Resorts sector.

Recent financial results have been flat, with operating cash flow for the year reported at a low Rs.0.09 crore. The half-year ROCE stood at 5.86%, the lowest recorded in recent periods. Return on Equity (ROE) is also subdued at 4.1%, further reflecting limited profitability.

Profitability has deteriorated over the past year, with profits falling by 41%, compounding the negative returns experienced by shareholders. The stock’s performance has been below par not only in the near term but also over longer horizons, underperforming the BSE500 index across the last three years, one year, and three months.

Shareholding and Market Capitalisation

The majority shareholding in Royale Manor Hotels & Industries Ltd is held by promoters, maintaining a concentrated ownership structure. The company’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the Hotels & Resorts sector.

The company’s Mojo Score stands at 16.0, with a Mojo Grade of Strong Sell as of 18 Aug 2025, an upgrade from the previous Sell rating. This grading reflects the combination of weak fundamentals, valuation concerns, and recent price performance.

Comparative Sector and Index Performance

Within the Hotels & Resorts sector, Royale Manor’s recent price action contrasts with broader sector trends, which have also faced pressure but not to the same extent. The stock’s underperformance relative to the BSE500 index over multiple time frames highlights its challenges in maintaining competitive returns.

Technical indicators reinforce the bearish sentiment, with the stock trading below all major moving averages and exhibiting high intraday volatility. This technical weakness aligns with the fundamental concerns noted in the company’s financial metrics.

Summary of Key Metrics

To summarise, Royale Manor Hotels & Industries Ltd’s stock has declined to Rs.30.51, its lowest level in 52 weeks, reflecting a combination of subdued financial performance, valuation pressures, and technical weakness. The company’s average ROCE of 4.61%, flat recent results, and a 41% drop in profits over the past year underpin the cautious market stance. Despite trading at a premium Price to Book Value of 1.1, the stock’s returns have lagged significantly behind benchmark indices and sector peers.

These factors collectively contribute to the stock’s Strong Sell Mojo Grade and highlight the challenges faced by Royale Manor in the current market environment.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →