Why is Howard Hotels falling/rising?
As of 04-Jul, Howard Hotels Ltd's stock price is Rs 25.65, down 5.0%, with significant losses and decreased investor participation. Despite positive growth in net sales and profit over nine months, long-term fundamentals are weak, raising concerns about sustainability amid a 52% profit decline.
As of 04-Jul, Howard Hotels Ltd is experiencing a decline in its stock price, currently at Rs 25.65, which reflects a decrease of Rs 1.35 or 5.0%. Today's price summary indicates that the stock opened with a significant loss of 3.7% and reached an intraday low of Rs 25.05, marking a drop of 7.22%. The stock has underperformed its sector by 5.15% today, and there has been a notable decrease in investor participation, with delivery volume falling by 36.87% against the five-day average. While the company has shown positive growth in net sales and profit after tax over the last nine months, its long-term fundamental strength is weak, evidenced by a low return on capital employed and a significant drop in profits over the past year.In the broader market context, the stock's one-week return of -2.84% contrasts with the Sensex's decline of only 0.74%, indicating a more pronounced weakness in Howard Hotels compared to the market. Although the stock has generated a positive return of 6.87% over the past year, this is overshadowed by a 52% fall in profits, raising concerns about its sustainability. The stock's performance over the last three years has been strong, with a return of 383.96%, but the current negative trends suggest that investors are cautious, particularly given the company's poor ability to service its debt and its expensive valuation relative to peers.
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