Thakkers Developers Receives 'Hold' Rating Upgrade

Thakkers Developers, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company's technical trend has improved from Mildly Bearish to Mildly Bullish on January 1, 2024. One of the key technical factors contributing to this upgrade is the Bullish Bollinger Band since the beginning of the year.
Despite the positive technical trend, Thakkers Developers' stock is currently trading at a premium compared to its average historical valuations. Additionally, the company's profits have fallen by -67.7% in the past year, while the stock has only generated a return of 6.13%. This can be attributed to the poor long-term growth of the company, with net sales growing at an annual rate of 15.29% over the last 5 years.

Thakkers Developers is primarily owned by its promoters, who hold the majority of the company's shares. In the last quarter, the company reported negative results, with its operating cash flow at its lowest at Rs -9.52 crore and its profits falling by -70.94%. The company's return on capital employed (ROCE) for the first half of the year was also at its lowest at 10.11%.

In the last year, Thakkers Developers has underperformed the market, with a return of only 6.13% compared to the market's return of 25.12%. While the company's valuation may seem attractive with a price to book value of 0.9 and a return on equity (ROE) of 8.5%, investors should carefully consider the company's recent performance and future potential before making any investment decisions.