Brookfield India Real Estate Trust (BIRET) Upgraded to 'Buy' by MarketsMOJO, Showing Strong Growth Despite Risks

Brookfield India Real Estate Trust (BIRET) has recently caught the attention of investors as its stock call has been upgraded to 'Buy' by MarketsMOJO. This midcap company in the miscellaneous industry has shown healthy long-term growth with an annual increase of 79.97% in net sales and 43.35% in operating profit. In fact, in the latest quarter, BIRET declared very positive results with the highest operating cash flow of Rs 1,432.83 crore and net sales of Rs 573.76 crore.
Technically, the stock is in a bullish range and the trend has improved from mildly bullish to bullish on 16-Sep-24. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

However, there are some risks associated with investing in BIRET. The company has a high debt to EBITDA ratio of 7.88 times, which may affect its ability to service debt. Additionally, the return on equity (avg) is only 1.45%, indicating low profitability per unit of shareholders' funds. The stock also has a very expensive valuation with a 1.1 enterprise value to capital employed.

Despite these risks, the stock is currently trading at a discount compared to its average historical valuations. In the past year, BIRET has generated a return of 17.29%, which is lower than the market (BSE 500) returns of 34.97%. This may be a concern for some investors as the stock has underperformed the market in the last year.

In conclusion, while BIRET has shown strong growth and has recently been upgraded to a 'Buy' by MarketsMOJO, investors should carefully consider the risks associated with the company before making any investment decisions.