D B Realty receives 'Hold' rating from MarketsMOJO after positive results and bullish trend

D B Realty, a midcap real estate company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in December 2023, with its operating profit to interest ratio reaching a high of 15.83 times. Additionally, its profit after tax has grown by a staggering 1779.1% to Rs 478.40 crore, while its PBDIT has also reached a high of Rs 80.60 crore.
Technically, the stock is currently in a bullish range and has shown improvement since January 15, 2024, generating a return of 2.43%. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish trend for the stock.

In the long term, D B Realty has outperformed the BSE 500 index, generating a return of 237.19% in the last year. However, its fundamental strength is weak, with an average ROCE of 0% and poor growth in operating profit over the last 5 years. The company also has a high debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt.

The stock is currently trading at a discount compared to its historical valuations, with a PEG ratio of 0. Despite generating a high return of 237.19% in the last year, its profits have only risen by 314.8%, resulting in a PEG ratio of 0.

It is worth noting that 39.73% of the promoter shares of D B Realty are pledged, which can put additional downward pressure on the stock prices in falling markets. This proportion has also increased by 2.17% in the last quarter.

Overall, while D B Realty has shown positive results in the short term, its long term fundamental strength and high promoter pledged shares should be considered before making any investment decisions. MarketsMOJO's 'Hold' rating reflects a neutral stance on the stock, with no recommendation for or against investing in it.