Thakkers Developers Downgraded to 'Sell' Rating

Thakkers Developers, a microcap real estate company, has recently been downgraded to a 'Sell' by MarketsMOJO on December 26, 2023. This decision was based on the company's poor long-term growth, negative results in September 2023, and underperformance in the market.
According to MarketsMOJO, Thakkers Developers has shown a slow growth rate of 15.29% in net sales over the past 5 years. In addition, their operating cash flow has been consistently low, with the lowest recorded at Rs -9.52 crore. Their profits have also seen a significant decline of -70.94% in the last 9 months, with a ROCE of only 10.11%.

From a technical standpoint, the stock is currently in a Mildly Bearish range and has been on a downward trend since December 20, 2023. The key technical factor, MACD, has also been Bearish since the same date.

In terms of market performance, Thakkers Developers has underperformed in the last year with a return of only 2.26%, compared to the market (BSE 500) returns of 24.32%. This is a cause for concern for investors.

While the company's ROE of 8.5 may seem attractive, it is important to note that the stock is currently trading at a premium compared to its historical valuations. Additionally, despite the small return in the past year, the company's profits have actually fallen by -67.7%.

It is worth mentioning that the majority shareholders of Thakkers Developers are the promoters themselves. This may raise questions about the company's management and their decision-making.

In conclusion, based on the recent downgrade by MarketsMOJO and the company's poor financial performance, it may be wise for investors to consider selling their stocks in Thakkers Developers.