Eldeco Housing & Industries Receives 'Hold' Rating from MarketsMOJO, Financials Raise Caution

Eldeco Housing & Industries, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO on May 30, 2024. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times, indicating a stable financial position.
The stock is also showing a Mildly Bullish trend, with its MACD and KST technical factors in a Bullish range. In addition, Eldeco Housing & Industries has outperformed the BSE 500 index in the long term as well as the near term, with a return of 60.37% in the last year.

However, the company's long term growth has been poor, with a negative annual growth rate of -7.69% in Net Sales and only 8.30% in Operating profit over the last 5 years. This has resulted in negative results for the past 4 consecutive quarters.

Furthermore, the company's financials show a decline in profits, with a 126.19% growth in Interest and a -21.94% growth in PAT (HY). The ROCE (HY) is also at its lowest at 10.61%. With a ROE of 9.1, the stock is currently trading at a Very Expensive valuation with a 2.5 Price to Book Value.

It is also worth noting that despite its size, domestic mutual funds hold only 0% of the company, indicating a lack of confidence in the stock. This could be due to either the high valuation or concerns about the company's business.

In conclusion, while Eldeco Housing & Industries has shown a strong performance in the stock market, its financials and lack of interest from domestic mutual funds suggest caution for potential investors. MarketsMOJO's 'Hold' rating reflects the current state of the company and its potential for future growth.