Ansal Buildwell Receives 'Hold' Rating from MarketsMOJO, Shows Strong Short-Term Performance

Ansal Buildwell, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO on July 31, 2024. This upgrade comes as the company has shown positive results for the last three consecutive quarters. Its profit after tax for the last nine months has grown by an impressive 699.66%, while its net sales have also increased to Rs 38.80 crore.
Technically, the stock is in a bullish range and has shown improvement from being mildly bullish on July 31, 2024. Multiple factors such as MACD, Bollinger Band, and KST have contributed to this bullish trend. Additionally, with a return on equity of 11.8%, the stock is fairly valued with a price to book value of 0.9. It is also currently trading at a discount compared to its average historical valuations.

In the past year, Ansal Buildwell's stock has generated a return of 110.06%, outperforming the market (BSE 500) returns of 37.33%. This impressive performance can be attributed to the majority shareholders being promoters of the company.

However, the company's long-term fundamental strength is weak due to operating losses. Its ability to service its debt is also a concern with a poor EBIT to interest ratio of 1.32. The return on equity of 3.50% also indicates low profitability per unit of shareholders' funds.

Overall, while Ansal Buildwell's stock has shown strong market-beating performance, its weak long-term fundamentals suggest a 'Hold' rating for now. Investors should keep an eye on the company's ability to improve its profitability and debt management in the future.