Lancor Holdings Receives 'Hold' Rating from MarketsMOJO, Shows Strong Results in Past 8 Quarters

Lancor Holdings, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the past 8 quarters. In the last half year, the company's net sales have grown by an impressive 45.43%, with a higher PAT of Rs 5.90 cr and a PBDIT of Rs 9.15 cr.
Technically, the stock is in a mildly bullish range and the trend has improved from sideways to bullish since 03-Jul-24. The Bollinger Band, a key technical factor, has also been bullish since 03 Jul 2024. With a ROCE of 7.8, the stock has an attractive valuation with a 1.9 Enterprise value to Capital Employed. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 48.05%, while its profits have risen by 868%. The PEG ratio of the company is 0, indicating a good value for investors.

The majority shareholders of Lancor Holdings are the promoters, which can be seen as a positive sign for the company. It has also consistently generated good returns over the last 3 years, outperforming the BSE 500 index. However, the company has a weak long-term fundamental strength with a -4.44% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 13.55 times, indicating a low ability to service debt. The return on equity (avg) of 0.34% also signifies low profitability per unit of shareholders' funds.

Overall, while Lancor Holdings has shown positive results and has a bullish technical trend, it also has some weaknesses in its long-term fundamentals. Investors may want to hold onto their stocks for now and keep an eye on the company's performance in the future.