Brookfield India Real Estate Trust Upgraded to 'Hold' Amid Bullish Trend, But High Debt Raises Concerns

Brookfield India Real Estate Trust, a midcap company in the miscellaneous industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This upgrade comes as the stock has shown a bullish trend, with technical factors such as MACD and Bollinger Bands also indicating a positive outlook. However, the company's high debt to EBITDA ratio of 7.88 times raises concerns about its ability to service debt. Additionally, its return on equity of 1.45% reflects low profitability per unit of shareholders' funds.
In the last quarter of 2024, the company's results were flat, with a significant increase in interest expenses and a decline in profits. Its debt-equity ratio is also at its highest at 1.18 times. With a ROCE of 3.9, the stock is currently trading at a very expensive valuation, with an enterprise value to capital employed ratio of 1.1. However, it is currently trading at a discount compared to its average historical valuations.

Over the past year, the stock has underperformed the market, generating a return of only 1.70% while the market (BSE 500) has seen a return of 36.98%. This could be attributed to the company's falling profits, which have declined by -103%. Overall, while the stock may have a positive technical outlook, its financial performance and high debt levels suggest a cautious approach for investors.