Caution urged as Manjeera Constructions downgraded again

Manjeera Constructions, a microcap real estate company, has faced a downgrade in its stock call from 'Sell' to 'Strong Sell' by MarketsMOJO on August 16, 2023.
The downgrade is based on several factors that indicate a weak long-term fundamental strength for the company. This includes a negative book value, poor long-term growth with net sales declining at an annual rate of -29.11% and operating profit remaining stagnant at 0% over the last 5 years. Additionally, the company has a high debt-to-equity ratio of 0 times, which is a cause for concern.

In the past four quarters, Manjeera Constructions has announced negative results, with its profits declining by -51.31% and its debt-to-equity ratio at its highest at -2.60 times. The company's net sales have also fallen by -18.1% in the last quarter.

One of the major risks associated with investing in this stock is its negative EBITDA, which is not a desirable sign for investors. Moreover, the stock is currently trading at a risky level compared to its average historical valuations. Despite generating a return of 7.51% in the past year, its profits have only increased by 13.4%.

On a positive note, the stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on December 8, 2023. Another key technical factor, the MACD, has also been bullish since the same date.

It is important to note that the majority shareholders of Manjeera Constructions are its promoters, which may influence the company's decision-making and future prospects. However, with the current state of the company's financials, it is advisable for investors to approach the stock with caution.