PVV Infra Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Results in Recent Quarters

PVV Infra, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's positive financial results for the past four consecutive quarters. In the last 9 months, the company's net sales have grown by 47.40% to reach Rs 54.05 crore. Its quarterly profits have also shown 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 multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. Additionally, with a ROE of 6, the stock is attractively valued at a 1.4 price to book value. However, it is trading at a premium compared to its historical valuations.

One of the key factors contributing to the 'Hold' rating is the rising confidence of promoters in the company. In the previous quarter, promoters have increased their stake by 20.11%, currently holding 26.65% of the company. This is a positive sign, indicating high confidence in the future of the business.

In terms of performance, PVV Infra has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, generating a return of 115.03%. However, the company's long-term fundamental strength is weak, with a -2.75% CAGR growth in operating profits over the last 5 years. Its ability to service debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.55. The company's return on equity (avg) of 8.59% also signifies low profitability per unit of shareholders' funds.

Overall, while PVV Infra has shown promising growth in the short term, its long-term fundamentals and debt-servicing ability raise some concerns. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.