Why is Howard Hotels falling/rising?

Jul 16 2025 10:00 PM IST
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As of 16-Jul, Howard Hotels Ltd's stock price is declining at 26.37, down 2.33%, and has underperformed its sector. Despite a strong annual return of 14.65%, weak long-term fundamentals and a significant drop in investor participation are contributing to its current challenges.
As of 16-Jul, Howard Hotels Ltd is experiencing a decline in its stock price, currently at 26.37, which reflects a decrease of 0.63 or 2.33%. The stock has underperformed its sector by 3.21% today, and while it remains above the 20-day, 50-day, 100-day, and 200-day moving averages, it is below the 5-day moving average. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 94.86% against the 5-day average. Over the past week, the stock has decreased by 2.30%, although it has shown a positive return of 9.42% over the past month and 14.65% over the past year. Despite these positive annual returns, the stock's long-term fundamentals are weak, with a low return on capital employed (ROCE) of 2.53% and a concerning EBIT to interest ratio of 0.23, indicating challenges in servicing debt.

In the broader market context, the Sensex has declined by 1.08% over the past week, which suggests that while Howard Hotels is underperforming relative to the market, it is not alone in facing downward pressure. The stock's performance over the last year has been strong compared to the benchmark, generating a return of 14.65% against the Sensex's 2.38%. However, the stock's recent price movement is influenced by its weak long-term growth prospects, as evidenced by a 52% drop in profits over the past year despite the positive sales growth reported. This combination of underperformance in the short term and concerns about long-term sustainability appears to be driving the stock's current decline.
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