MarketsMOJO Upgrades Rodium Realty to 'Hold' Based on Technical Indicators and Attractive Valuation

MarketsMOJO has recently upgraded its stock call on Rodium Realty to 'Hold' based on technical indicators and attractive valuation. The stock has been in a bullish range and the technical trend has improved from mildly bullish on November 5, 2024. Factors such as MACD, Bollinger Band, and KST have contributed to the bullish sentiment.
Despite a return of 82.97% in the past year, the company's profits have fallen by -34%. However, with a ROCE of 3.7 and an attractive valuation with a 1.2 Enterprise value to Capital Employed, the stock is trading at a discount compared to its average historical valuations. The majority shareholders of Rodium Realty are promoters.

The company has shown market-beating performance in the long term as well as the near term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, with a high debt-to-equity ratio of 6.31 times, the company has a weak long-term fundamental strength. Its net sales have only grown by an annual rate of 2.24% and operating profit has remained stagnant at 0% over the last 5 years. Additionally, the company has a high debt-to-equity ratio (avg) of 0 times.

In the latest quarter, the company's results have been flat with a decrease in net sales by -24.6% and a significant decrease in profits by -567.8%. The PBDIT (Profit Before Depreciation, Interest, and Taxes) has also been at its lowest at Rs -3.13 cr. Overall, while the stock may have potential for growth in the future, it is currently recommended to hold due to its weak long-term fundamentals and high debt.