Rander Corporation Receives 'Hold' Rating After Positive First Quarter Results

Rander Corporation, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO on June 18, 2024. This upgrade comes after the company reported positive results in the first quarter of 2024, with its PBDIT(Q) reaching a high of Rs 0.88 crore, PBT LESS OI(Q) at Rs 0.87 crore, and PAT(Q) at Rs 0.65 crore.
The stock is currently in a bullish range, with its technical trend improving from mildly bullish on June 18, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST. However, the majority shareholders of Rander Corporation are non-institutional investors.

Despite its market-beating performance, with a return of 135.74% in the last year compared to the market's (BSE 500) return of 37.27%, the company's long-term fundamental strength is weak. Its average ROE stands at 0.82%, and its net sales and operating profit have only grown at an annual rate of 25.48% and 11.71%, respectively, over the last five years. Additionally, Rander Corporation's ability to service its debt is poor, with an EBIT to Interest (avg) ratio of 0.68.

The stock is currently trading at an expensive valuation, with a price to book value of 0.7 and an ROE of 8.5. However, it is still at a discount compared to its average historical valuations. While the stock has seen a significant return in the past year, its profits have only risen by 118%, resulting in a PEG ratio of 0. This indicates that the stock may be overvalued and investors should exercise caution before making any investment decisions.

Overall, Rander Corporation's recent upgrade to a 'Hold' rating by MarketsMOJO may be a positive sign for the company, but its weak long-term fundamental strength and expensive valuation should be taken into consideration by potential investors.