PVV Infra Receives 'Hold' Rating from MarketsMOJO After Consistent Positive Results

PVV Infra, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the past four quarters. In the last nine months, the company's net sales have grown by an impressive 47.40%, with the highest PAT and PBDIT recorded at Rs 1.83 crore and Rs 2.15 crore respectively. Technically, the stock is currently in a bullish range and has shown a significant improvement since April 2024, generating a return of 36.32%. Multiple factors such as MACD, Bollinger Band, KST, and OBV indicate a bullish trend for the stock. With a ROE of 6, PVV Infra is currently trading at an attractive valuation with a price to book value of 1.6. However, it is trading at a premium compared to its historical valuations. Despite this, the stock has generated a return of 156.69% in the past year, while its profits have risen by 319%. This results in a PEG ratio of 0, indicating a strong performance in the market. In the long term, PVV Infra's fundamental strength is weak, with a -2.75% CAGR growth in operating profits over the last five years. The company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.55. Additionally, the company has a low profitability per unit of shareholders' funds, with a Return on Equity (avg) of 8.59%. Furthermore, there has been a decrease in institutional investors' participation in the company, with a -1.81% decrease in stake over the previous quarter. Currently, institutional investors hold only 1% of the company, indicating a lack of confidence in its fundamentals. Overall, while PVV Infra has shown a strong performance in the market in the near term, its long-term fundamentals and institutional investors' decreasing participation raise some concerns. Therefore, MarketsMOJO has upgraded its rating to 'Hold' for the stock.