Eldeco Housing & Industries Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth and Negative Results

Eldeco Housing & Industries, a smallcap real estate company, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-06-27. This decision was based on the company's poor long-term growth, with net sales declining at an annual rate of -7.69% and operating profit only growing at 8.30% over the last 5 years.
In addition, the company has declared negative results for the last 4 consecutive quarters, with interest growing at a staggering 126.19% and PAT declining by -21.94%. The company's ROCE is also at its lowest at 10.61%, indicating a lack of profitability.

Furthermore, with a ROE of 9.1, the company's valuation is considered very expensive with a price to book value of 2.7. The stock is currently trading at a premium compared to its historical valuations, despite its profits falling by -23.7% over the past year.

Another concerning factor is that despite its size, domestic mutual funds hold only 0% of the company. This could suggest that either they are not comfortable with the current price or they have not conducted thorough research on the company.

On a positive note, the company has a low debt to equity ratio and its stock is currently in a mildly bullish range. However, multiple technical factors such as MACD, Bollinger Band, KST, and DOW are also indicating a bullish trend for the stock.

In conclusion, based on the company's poor long-term growth, negative financial results, and expensive valuation, MarketsMOJO has downgraded Eldeco Housing & Industries to a 'Sell'. Investors should carefully consider these factors before making any investment decisions.