MarketsMOJO downgrades PVV Infra due to weak fundamentals and debt concerns

PVV Infra, a microcap real estate company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a -2.75% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.55.
Despite declaring positive results for the last 4 consecutive quarters, with a growth of 47.40% in net sales and a PAT(Q) of Rs 1.83 cr, PVV Infra's profitability per unit of shareholders funds is low, with a Return on Equity (avg) of 8.59%. However, the stock is currently in a mildly bullish range and its technical factors, such as MACD and KST, are also bullish.

With a ROE of 6, the stock is fairly valued with a 1.6 price to book value. However, it is trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 192.07%, while its profits have risen by 319%, resulting in a PEG ratio of 0.

On a positive note, promoter confidence in the company is rising, with a 20.11% increase in their stake in the previous quarter. Currently, promoters hold 26.65% of the company, indicating a high level of confidence in the future of the business.

PVV Infra has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, considering the recent downgrade and the company's weak fundamental strength, investors may want to carefully evaluate their investment in PVV Infra.