Crest Ventures Downgraded to 'Hold' by MarketsMOJO, Despite Strong Growth and Positive Results

Crest Ventures, a smallcap company in the construction and real estate industry, has recently been downgraded to a 'Hold' by MarketsMOJO on November 8, 2024. This decision was based on the company's healthy long-term growth, with a 33.05% annual growth in net sales and 55.79% in operating profit. Additionally, the company declared outstanding results in June 2024, with a 647.41% growth in net profit.
The company has also shown positive results for the last two consecutive quarters, with a 170.26% growth in PAT (9M) and the highest operating cash flow of Rs -7.36 crore. Furthermore, the operating profit to interest ratio is at its highest at 11.54 times. Technically, the stock is in a mildly bullish range, with both MACD and KST technical factors showing a bullish trend.

Crest Ventures has consistently generated returns over the last three years, outperforming the BSE 500 index in each of the last three annual periods. However, with a ROE of 5.6, the stock is currently trading at a very expensive valuation with a price to book value of 1.3. Despite this, the stock is trading at a discount compared to its average historical valuations.

Interestingly, domestic mutual funds hold only 0% of the company, which may indicate that they are not comfortable with the current price or the business. This is surprising considering the company's size and the fact that domestic mutual funds have the capability to conduct in-depth research on companies. Overall, while Crest Ventures has shown strong growth and consistent returns, investors may want to hold off on buying the stock until it becomes more attractively priced.