Shriram Properties Adjusts Evaluation Score Amid Rising Sales and Investor Interest

Shriram Properties, a smallcap player in the realty sector, has recently undergone an adjustment in its evaluation score. This revision reflects a shift in technical trends, moving from a mildly bearish stance to a mildly bullish outlook.
In terms of key financial metrics, the company reported a notable increase in net sales for the latest six months, reaching Rs 650.05 crore, which represents a growth of 42.49%. Additionally, the profit before tax (PBT) less other income for the same period stood at Rs 2.63 crore, marking a significant growth of 117.0% compared to the previous four-quarter average. The profit after tax (PAT) also showed an upward trend, recorded at Rs 68.37 crore.

Despite these positive indicators, Shriram Properties has faced challenges in long-term performance, with a -24.77% compound annual growth rate (CAGR) in operating profits over the past five years. The company's ability to service its debt appears constrained, as indicated by a poor EBIT to interest ratio of 0.58. Furthermore, the return on equity (ROE) averaged at 5.70%, suggesting limited profitability relative to shareholders' funds.

Institutional investors have shown increased participation, raising their stake by 0.79% in the last quarter, now holding 4.84% of the company. This trend may reflect a growing confidence in the company's fundamentals.

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