PVV Infra Receives 'Hold' Rating from MarketsMOJO After Strong Quarterly Results

PVV Infra, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last four consecutive quarters. In the last nine months, the company's net sales have grown by an impressive 47.40%, reaching Rs 54.05 crore. Additionally, its quarterly profits have also seen a significant increase, with the highest PAT of Rs 1.83 crore and PBDIT of Rs 2.15 crore.
Technically, the stock is currently in a mildly bullish range, with the technical trend improving from sideways on 26-Jul-24. The MACD and KST technical factors also indicate a bullish trend. With a ROE of 6, the stock is attractively valued with a price to book value of 0.9. However, it is trading at a premium compared to its average historical valuations. Despite this, the stock has generated a return of 46.32% in the past year, while its profits have risen by an impressive 319%. The PEG ratio of the company is also at a low of 0, indicating its potential for growth.

The majority shareholders of PVV Infra are non-institutional investors. However, the company's long-term fundamental strength is weak, with a -2.75% CAGR growth in operating profits over the last five years. Its ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.55. The company's return on equity (avg) is also low at 8.59%, indicating a low profitability per unit of shareholders' funds.

Overall, while PVV Infra has shown positive results in the recent past, its long-term fundamental strength and ability to service debt are areas of concern. Investors may want to hold onto their positions for now and monitor the company's performance closely.