Atal Realtech Receives 'Sell' Rating from MarketsMOJO Due to Poor Long-Term Growth and Underperformance in the Market

Atal Realtech, a microcap company in the capital goods industry, has recently received a 'Sell' rating from MarketsMOJO on October 14, 2024. This downgrade is based on the company's poor long-term growth, with net sales declining at an annual rate of -6.60% over the last 5 years.
In addition, the company's recent financial results for June 2024 have been flat, with a significant decrease in profits. The PAT (Q) has fallen by -62.6%, PBDIT (Q) is at its lowest at Rs 0.61 cr, and PBT LESS OI (Q) is also at its lowest at Rs 0.12 cr.

Furthermore, Atal Realtech has underperformed the market in the last year, with negative returns of -35.60% compared to the market's 35.61% returns. The technical trend for the stock is currently sideways, indicating no clear price momentum, and has generated only 0.33% returns since the downgrade on October 14, 2024.

However, the company does have an attractive valuation with a ROCE of 10.1 and an enterprise value to capital employed ratio of 2.3. Despite the negative returns in the past year, the company's profits have actually increased by 3%.

It is worth noting that the majority of shareholders in Atal Realtech are non-institutional investors. This may indicate a lack of confidence in the company's performance and could be a contributing factor to the 'Sell' rating from MarketsMOJO.

Overall, Atal Realtech's recent downgrade to 'Sell' by MarketsMOJO is based on its poor long-term growth and underperformance in the market. Investors should carefully consider these factors before making any investment decisions.