Why is Howard Hotels falling/rising?

Aug 11 2025 10:26 PM IST
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As of 11-Aug, Howard Hotels Ltd is currently priced at 26.87, reflecting a 1.47% increase and strong recent performance, outperforming its sector and the Sensex over the past week. However, concerns about long-term fundamentals persist due to weak ROCE and EBIT to interest ratios.
As of 11-Aug, Howard Hotels Ltd is experiencing a price increase, currently at 26.87, with a change of 0.39, representing a rise of 1.47%. The stock has shown strong performance today, outperforming its sector by 0.41% and has gained consecutively for the last two days, resulting in a total return of 3.39% over this period. Additionally, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite a significant drop in delivery volume, which fell by 70.38% against the 5-day average, the company has declared positive results for the last three consecutive quarters, with a profit after tax of Rs 1.53 Cr and a PEG ratio of 0, indicating favorable valuation compared to peers. The stock has generated a return of 6.21% over the past year, while profits have increased by 75%, contributing to its recent upward movement.

In the broader market context, Howard Hotels has outperformed the Sensex over the past week, with a return of 2.56% compared to the benchmark's decline of 0.51%. However, the stock has underperformed over the longer term, with a year-to-date return of -2.18% against the Sensex's gain of 3.15%. While the stock has shown consistent returns over the last three years, concerns about its long-term fundamental strength remain, particularly with a weak average return on capital employed (ROCE) of 5.13% and a poor EBIT to interest ratio of 0.24. These factors suggest that while the stock is currently rising, there are underlying risks that could affect its future performance.
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