Why is Best Eastern Hot falling/rising?

Jul 17 2025 09:18 PM IST
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As of 17-Jul, Best Eastern Hotels Ltd's stock price has increased to 15.19, but it has declined 4.94% over the past week and 10.96% year-to-date. Despite today's outperformance against its sector, the stock shows weak long-term fundamentals and poor investor confidence, indicating a bleak outlook.
As of 17-Jul, Best Eastern Hotels Ltd is experiencing a price increase, with its current price at 15.19, reflecting a change of 0.23 or 1.54% upward. Despite this positive movement today, the stock has shown a decline of 4.94% over the past week and a more significant drop of 10.96% year-to-date. Today's performance indicates that the stock has outperformed its sector by 1.05%. However, there is a concerning trend in investor participation, as the delivery volume has decreased by 45.89% compared to the 5-day average. Additionally, the company has weak long-term fundamental strength, with a low Return on Capital Employed (ROCE) of 4.54% and poor growth metrics, which may contribute to a lack of confidence among investors.

Broader market context reveals that while the stock has outperformed the sector today, it has underperformed the benchmark, the Sensex, over the past year, with a return of -12.15% compared to the Sensex's gain of 1.91%. The stock's performance over the last three years is particularly concerning, showing a decline of 26.26%, while the broader market has appreciated significantly. The company's weak ability to service its debt, as indicated by a poor EBIT to Interest ratio, and flat results in recent financial disclosures further exacerbate the situation, suggesting that despite today's rise, the stock's long-term outlook remains bleak.
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