Why is Best Eastern Hot falling/rising?
As of 22-Jul, Best Eastern Hotels Ltd is seeing a short-term price increase to 15.34, but it has a year-to-date return of -10.08% and weak fundamentals, indicating a challenging long-term outlook despite recent gains.
As of 22-Jul, Best Eastern Hotels Ltd is experiencing a price increase, with the current price at 15.34, reflecting a change of 0.1 or 0.66% upward. The stock has outperformed its sector today by 2.07%, and it is currently trading above its 5-day, 20-day, 50-day, and 100-day moving averages, although it remains below its 200-day moving average. Despite this positive short-term performance, the stock has shown a significant decline over the longer term, with a year-to-date return of -10.08% and a one-year return of -12.64%. The company's fundamentals are weak, indicated by a low Return on Capital Employed (ROCE) of 4.54% and poor growth metrics, with net sales and operating profit growing at rates of 7.73% and 5.87%, respectively, over the last five years. Additionally, the company has a concerning EBIT to Interest ratio of 0.16, suggesting difficulties in servicing its debt.In the broader market context, the stock's short-term performance contrasts with the benchmark, as it has gained 0.92% over the past week while the Sensex has declined by 0.47%. However, over the past year, Best Eastern Hotels Ltd has underperformed significantly compared to the market, which has generated a return of 0.99%. This underperformance, coupled with a flat financial result in March and a decline in investor participation, as evidenced by a 46.75% drop in delivery volume, indicates that while there may be short-term gains, the long-term outlook remains challenging for the stock.
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