You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 68% of retail investor accounts lose money when trading CFDs with this provider. The revenue growth momentum is expected to sustain going forward, with healthy demand outlook for the hotel industry, while improved operating leverage and sustenance of cost-optimisation measures undertaken by the company during the pandemic period are likely to support accruals, it said.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. ICRA expects revenues and operating profits for Oriental Hotels are likely to witness healthy improvement on full-year basis in FY2023. OHL’s interest coverage metrics also improved to 4.7 times in H1 FY2023 from 0.7 times in H1 FY2020," ICRA noted.
OHL’s net debt/OPBDITA improved to 2 times in H1 FY2023 as against 13.3 times in H1FY2020. "While OHL has relatively high debt levels for its scale of operations due to debt-funded capex and net losses in the past, its coverage metrics have improved in H1 FY2023, on the back on healthy accruals. The operating profit margin for H1 improved to 27.1 per cent from 7.2 per cent in H1 FY2020, benefitting from improved operating leverage and sustenance of cost optimisation measures undertaken in the last two years, ICRA said. Oriental Hotels reported a 30.7 per cent jump in operating income at Rs 1,77.40 crore for the first half of FY23 compared with the pre-Covid levels of Rs 135.70 crore in H1 FY20, aided by improved demand, stemming from business travel, transient passengers, leisure travel and MICE events - both weddings and corporate MICE, ICRA noted in November. Keep a stop below Rs 69 for long trades," Shah said. Overall, hotel stocks are in an uptrend and sooner or later prices will see more upsides to higher zones. On the upside, if prices break above Rs 82 expect a continued rally to Rs 110 and above that to Rs 120. This sideways movement marks a pause in the existing uptrend. On the daily time frame, trade prices are caught in a trading range between Rs 86 and Rs 72 for almost 4 weeks.
Such type of a creeping uptrend can last for a long time and price may not show a steep decline, he suggested. He noted that the Directional movement index is showing strong ADX values and the 20-day moving average is in a rising trajectory. Independent Analyst Manish Shah said Orient Hotels has showed presence of a strong trend on the weekly time frame.
However, if the up move continues then one can re-enter this stock above Rs 88 levels," Vaishnav said. From the technical standpoint, it would be prudent for the investors to book profits or protect profits at current levels. On the weekly timeframe, the prices have formed a rising wedge pattern all these cumulatively hint at a potential top in place for the stock. "Importantly, the last phase of up move over the past 2 months has come with a strong bearish divergence of the RSI against the price. Following a small double top, the price has shown some retracement, Vaishnav said. He noted that the stock has marked a high of Rs 87.70 and has shown some signs of it taking a breather.
Milan Vaishnav, Founder & Technical Analyst at Gemstone Equity Research said the stock has by and large remained in a steady uptrend all through 2022 but the most recent price action shows that after such a decent runup, it is time that investors look towards booking profits in this stock. Technical experts are mixed on the counter. After seeing a strong momentum of late, the scrip has turned rangebound in the last 3-4 weeks.
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