Why is Best Eastern Hot falling/rising?

Jul 18 2025 09:16 PM IST
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As of 18-Jul, Best Eastern Hotels Ltd is seeing a price increase to 15.41, but it has weak long-term fundamentals, including a low ROCE of 4.54% and concerning debt servicing ability. Despite recent short-term gains, the stock has significantly underperformed over the long term, with a year-to-date decline of 9.67%.
As of 18-Jul, Best Eastern Hotels Ltd is experiencing a price increase, currently at 15.41, reflecting a change of 0.22 or 1.45% upward. The stock has outperformed its sector today by 0.56% and has shown a consecutive gain over the last two days, with a total return of 3.01% during this period. However, despite this recent uptick, the stock has a weak long-term fundamental strength, evidenced by an average Return on Capital Employed (ROCE) of 4.54% and poor growth metrics, such as a net sales growth rate of only 7.73% over the past five years. Additionally, the company's ability to service its debt is concerning, with a low EBIT to Interest ratio of 0.16, which may contribute to investor caution despite the recent price rise.

In the broader market context, the stock's short-term performance contrasts with the benchmark, as it has gained 4.19% over the past month while the Sensex has only increased by 0.38%. However, the stock has underperformed significantly over the longer term, with a year-to-date decline of 9.67% compared to the Sensex's gain of 4.63%. This underperformance is further highlighted by a substantial drop of 28.66% over the past three years, while the benchmark has risen by nearly 50%. The falling investor participation, indicated by a 67.36% drop in delivery volume, suggests a lack of confidence in the stock's long-term prospects, despite its recent gains.
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