Atal Realtech downgraded to 'Sell' by MarketsMOJO due to weak fundamentals and underperformance.

Atal Realtech, a microcap company in the capital goods industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 22, 2024. This decision was based on the company's weak long-term fundamental strength, with a -6.60% CAGR growth in net sales over the last 5 years. Additionally, the company has a low profitability per unit of shareholders' funds, with a return on equity of 5.67%. The stock is also considered to be very expensive, with a price to book value of 2.1 and a return of -12.66% in the past year. This is in stark contrast to the market (BSE 500) which has generated returns of 25.57% in the same time period. This underperformance is a major factor in the downgrade. On the positive side, Atal Realtech has declared very positive results in September 2024, with a growth in net profit of 805%. The company's net sales have also grown at an impressive rate of 223.30% and its PBDIT and PBT LESS OI have reached their highest levels at Rs 2.90 cr and Rs 2.25 cr respectively. Technically, the stock is currently in a mildly bullish range, with a 4.38% return since November 5, 2024. Multiple factors, such as MACD, KST, and OBV, are also indicating a bullish trend for the stock. It is worth noting that the majority of shareholders in Atal Realtech are non-institutional investors. This may have an impact on the stock's performance in the future. Overall, the downgrade to 'Sell' by MarketsMOJO is based on the company's weak long-term fundamentals and underperformance in the market. Investors should carefully consider these factors before making any decisions regarding Atal Realtech's stock.