Indiabulls Housing Finance Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth

Indiabulls Housing Finance, a midcap company in the finance-housing industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-05-21. This decision was based on the company's poor long-term growth, with net sales and operating profit declining at an annual rate of -13.06% and -10.84%, respectively. In addition, the company's results for December 2023 showed a decrease in PBT LESS OI(Q) at Rs 329.95 crore, a growth of -18.36% in NET SALES(Q) at Rs 2,142.65 crore, and the lowest PBDIT(Q) at Rs 1,664.19 crore.
Technically, the stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on 18-May-24. The MACD and KST technical factors are also Bearish, indicating a potential downward trend for the stock.

However, there are some positive factors to consider. The company has an attractive valuation with a price to book value of 0.4 and is currently trading at a discount compared to its average historical valuations. Additionally, the stock has generated a return of 63.30% in the last year, outperforming the market (BSE 500) returns of 36.54%.

It is worth noting that the company has a high institutional holding of 26.58%, indicating that these investors have better capability and resources to analyze the fundamentals of companies compared to most retail investors.

In conclusion, while Indiabulls Housing Finance may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO and the poor long-term growth of the company should be taken into consideration before making any investment decisions.