Tirupati Sarjan Receives 'Sell' Rating from MarketsMOJO

Tirupati Sarjan, a microcap real estate company, has recently received a 'Sell' rating from MarketsMOJO on October 9, 2023. This downgrade is based on the company's weak long-term fundamental strength, with a -5.42% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 3.76 times, indicating a low ability to service debt.
In the latest quarter, Tirupati Sarjan's profits have seen a significant decline, with PAT(HY) at Rs 1.75 crore, showing a -40.48% growth, and PBT LESS OI(Q) at Rs 1.34 crore, falling by -55.63%. The company's net sales have also decreased by -16.95% to Rs 41.64 crore. These negative results have contributed to the 'Sell' rating.

On the technical side, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, KST, and OBV showing a bullish trend. However, the company's return on equity (avg) is only 4.78%, indicating low profitability per unit of shareholders' funds.

Despite the current valuation being very attractive, with a ROCE of 7.2 and an enterprise value to capital employed ratio of 0.7, the stock is trading at a discount compared to its average historical valuations. Over the past year, while the stock has generated a return of 8.76%, its profits have fallen by -60.3%.

It is worth noting that the majority of Tirupati Sarjan's shareholders are non-institutional investors. This information, along with the 'Sell' rating from MarketsMOJO, can help investors make informed decisions about their investments in the company.