Dilip Buildcon Upgraded to 'Hold' Rating by MarketsMOJO, Positive Financial Results Show Growth

Dilip Buildcon, a midcap company in the capital goods industry, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on the company's positive financial results for the past 9 consecutive quarters. In the last quarter, the company's PBT LESS OI(Q) has grown by an impressive 658.45%, while its PAT(Q) has grown by 636.9%. Additionally, its PBDIT(Q) has reached a record high of Rs 499.74 crore.
Technically, the stock is currently in a Mildly Bullish range and has shown improvement from a Sideways trend on 25-Nov-24. The MACD and KST technical factors also indicate a Bullish trend. With a ROCE of 10.1, the company has a Very Attractive valuation and a low Enterprise value to Capital Employed ratio of 1.1. It is also trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 4.96%, its profits have risen by 251.1%, resulting in a low PEG ratio of 0.1.

Institutional investors have also shown increasing interest in Dilip Buildcon, with a 0.62% increase in their stake over the previous quarter. They currently hold 12.63% of the company, indicating their confidence in its fundamentals.

However, the company does have some weak points in its long-term fundamental strength. It has shown a -5.77% CAGR growth in Operating Profits over the last 5 years and has a high Debt to EBITDA ratio of 5.98 times, indicating a low ability to service debt. Its Return on Equity (avg) of 3.59% also signifies low profitability per unit of shareholders' funds.

In the last 1 year, Dilip Buildcon has underperformed the market, with a return of only 4.96% compared to the market's (BSE 500) return of 27.32%. This could be a cause for concern for investors.

Overall, while Dilip Buildcon has shown positive financial results and has a technically bullish trend, it also has some weak points that investors should consider before making any investment decisions. MarketsMOJO's 'Hold' rating suggests a neutral stance on the stock, and investors should do their own research and analysis before making any decisions.