Thakkers Developers Receives 'Hold' Rating from MarketsMOJO Amidst Mixed Financial Performance

Thakkers Developers, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO on February 6, 2024. This upgrade comes as the stock has shown a bullish trend and has improved technically from being mildly bullish on February 5, 2024. The company's stock has also shown positive indicators such as MACD, Bollinger Band, and KST.
The majority shareholders of Thakkers Developers are the promoters, indicating their confidence in the company's future prospects. However, the company has shown poor long-term growth with a net sales growth rate of only 15.29% over the last 5 years. In addition, the company's financial results for September 2023 were negative, with the lowest operating cash flow at Rs -9.52 crore and a decline of -70.94% in profits.

Furthermore, Thakkers Developers has a return on capital employed (ROCE) of only 10.11%, which is the lowest in the last half-year. With a return on equity (ROE) of 8.5, the company's valuation is considered expensive with a price to book value of 1.1. The stock is currently trading at a premium compared to its historical valuations.

In the past year, Thakkers Developers has underperformed the market, generating a return of only 20.65% compared to the market's (BSE 500) return of 33.23%. This indicates that while the stock has shown some growth, its profits have declined by -67.7%. Overall, MarketsMOJO's 'Hold' rating suggests that investors should exercise caution when considering investing in Thakkers Developers.