Navkar Urbanstructure Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and High Valuation

Navkar Urbanstructure, a microcap company in the construction material industry, has recently received a 'Sell' rating from MarketsMOJO on September 23, 2024. This downgrade is based on the company's weak long-term fundamental strength, with a -10.48% 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 1.78.
Furthermore, Navkar Urbanstructure has a low profitability per unit of shareholders' funds, with a Return on Equity (avg) of 1.74%. This is reflected in its expensive valuation, with a price to book value of 1.9 and a PEG ratio of 2.6. However, the stock is currently trading at a discount compared to its average historical valuations.

On the positive side, the company has shown strong performance in terms of PBDIT(Q), PBT LESS OI(Q), and PAT(Q), with all three being the highest at Rs 2.08 cr, Rs 2.04 cr, and Rs 2.05 cr respectively. Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend.

It is worth noting that the majority of shareholders in Navkar Urbanstructure are non-institutional investors. Despite the recent downgrade, the stock has outperformed the market (BSE 500) with a return of 132.81% in the last year, compared to the market's return of 40.49%. While the future potential of the company is not discussed, these are the facts and figures that investors should consider before making any decisions regarding Navkar Urbanstructure's stock.