MarketsMOJO Downgrades Ashiana Housing to 'Sell' Amidst Flat Results and Bearish Indicators

Ashiana Housing ., a smallcap company in the construction and real estate industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 8th, 2024. This decision was based on several factors, including the company's flat results in the June 2024 quarter, with a PAT(Q) of -5.45 crore, a decrease of 150.1% from the previous quarter. Additionally, the PBDIT(Q) was at its lowest at -5.77 crore and the operating profit to net sales (Q) was also at its lowest at -4.69%.
Technically, the stock is currently in a mildly bearish range and the technical trend has deteriorated from sideways on October 8th, 2024, with only a 1.26% return since then. Multiple indicators, such as MACD, Bollinger Band, and KST, also suggest a bearish outlook for the stock.

Furthermore, with a ROE of 8.8, the stock is currently trading at an expensive valuation with a price to book value of 4. However, it is worth noting that the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 53.47%, while its profits have risen by 135.5%. The PEG ratio of the company is also at a low 0.3.

On a positive note, the company has a low debt to equity ratio (average) of 0 times and has shown healthy long-term growth with an annual rate of 60.35% in operating profit. Additionally, the majority shareholders of the company are promoters, which can be seen as a vote of confidence in the company's future.

In terms of market performance, Ashiana Housing . has outperformed the market (BSE 500) with a return of 53.47% in the last year, compared to the market's return of 35.27%. However, with the recent downgrade by MarketsMOJO and the bearish indicators, investors may want to approach this stock with caution.