Alpine Housing Development Corporation Receives 'Hold' Rating After Consistent Positive Results

Alpine Housing Development Corporation, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the last four quarters. In fact, their PAT (9M) has grown by an impressive 139.78% and their NET SALES (HY) has seen a growth of 37.10%.
Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on 05-Mar-24. This can be attributed to multiple factors such as MACD, Bollinger Band, and KST. The majority shareholders of the company are the promoters, which can be seen as a positive sign for investors.

In terms of returns, Alpine Housing Development Corporation has outperformed the BSE 500 index in each of the last three annual periods and has generated a return of 64.01% in the last year alone. However, the company's long-term fundamental strength is weak with a -3.80% CAGR growth in operating profits over the last five years. Additionally, the company has a high debt to EBITDA ratio of 7.28 times, indicating a low ability to service debt.

The company's profitability per unit of shareholders' funds is also low, with a Return on Equity (avg) of 4.41%. Furthermore, with a ROCE of 6.3, the stock is currently trading at a very expensive valuation with a 3.4 Enterprise value to Capital Employed. However, it is worth noting that the stock is currently trading at a discount compared to its average historical valuations.

In conclusion, while Alpine Housing Development Corporation has shown strong returns in the past year, its long-term fundamental strength and valuation may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.