Hazoor Multi Projects Receives 'Sell' Rating from MarketsMOJO Due to Negative Financial Performance

Hazoor Multi Projects, a smallcap company in the construction and real estate industry, has recently received a 'Sell' rating from MarketsMOJO on September 10, 2024. This downgrade is based on the company's negative financial performance in the last quarter, with a significant decline in net sales and profits. In fact, the company has reported negative results for the past three consecutive quarters.
The company's PAT(Q) has fallen by a staggering -99.4% and its PBDIT(Q) is at its lowest at Rs -0.20 cr. Additionally, the operating profit to net sales ratio is also at its lowest at -0.59%. With a ROE of 15.2, the stock is currently trading at an expensive valuation with a price to book value of 4.9. However, it is worth noting that the stock is currently trading at a discount compared to its average historical valuations.

Despite generating a return of 335.88% in the past year, the company's profits have fallen by -42.5%. On a positive note, Hazoor Multi Projects has a strong ability to service debt with a low debt to EBITDA ratio of 0.61 times. The company also has a healthy long-term growth potential, with net sales growing at an annual rate of 224.98% and operating profit at 142.04%.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since August 29, 2024. It has generated a return of 33.57% since then and multiple technical indicators such as MACD, Bollinger Band, KST, DOW, and OBV are also bullish.

Institutional investors have also shown an increasing interest in the company, with their stake increasing by 8.26% in the previous quarter. They currently hold 19.18% of the company, indicating their confidence in its fundamentals.

Despite consistent returns over the last three years and outperforming BSE 500, Hazoor Multi Projects' recent financial performance has raised concerns. Investors should carefully consider these factors before making any investment decisions.