MarketsMOJO Downgrades Thakkers Developers to 'Sell' Due to Poor Growth and Expensive Valuation

Thakkers Developers, a microcap real estate company, has recently been downgraded to a 'Sell' by MarketsMOJO on February 1, 2024. This decision was based on the company's poor long-term growth, with net sales only growing at an annual rate of 15.29% over the last 5 years.
In addition, the company has also reported negative results in September 2023, with its operating cash flow at its lowest at Rs -9.52 crore and its profits growing at a negative rate of -70.94%. The return on capital employed (ROCE) for the first half of the year was also at its lowest at 10.11%.

Thakkers Developers also has an expensive valuation, with a price to book value of 1.1 and a return on equity (ROE) of 8.5. This indicates that the stock is trading at a premium compared to its average historical valuations. Despite generating a return of 22.55% over the past year, the company's profits have fallen by -67.7%.

Other factors to consider for Thakkers Developers include its technical position in a mildly bullish range and multiple bullish indicators such as MACD, Bollinger Band, and KST. However, it is important to note that the majority shareholders of the company are promoters.

Overall, the downgrade to 'Sell' by MarketsMOJO highlights the current challenges and weaknesses of Thakkers Developers in the real estate industry. Investors should carefully consider these factors before making any decisions regarding the company's stock.