HB Estate Developers Hits 52-Week Low Amid Broader Market Downturn and Debt Concerns
HB Estate Developers has reached a new 52-week low amid a broader market decline, despite outperforming its sector today. The company shows weaknesses in long-term fundamentals, including low ROCE and high debt levels, but has reported consistent operating profit growth and significant PAT increase over the past six months.
HB Estate Developers, a microcap player in the realty sector, has experienced significant activity today, hitting a new 52-week low of Rs. 73.5. This decline comes amid a broader market downturn, with the Sensex opening lower at 80,695.50 and currently trading at 81,318.94, reflecting a loss of 0.2%. Despite the challenging market conditions, HB Estate Developers has outperformed its sector by 1.17% today.The company's long-term fundamentals show some weaknesses, with a Return on Capital Employed (ROCE) averaging 4.09% and a high Debt to EBITDA ratio of 16.48 times, indicating difficulties in servicing debt. However, it has reported positive operating profit growth of 8.95% and has maintained a streak of positive results for the last 15 quarters. The latest six-month Profit After Tax (PAT) stands at Rs. 9.40 crore, marking a substantial growth of 55.89%.
Over the past year, HB Estate Developers has seen a return of -6.18%, contrasting with the Sensex's performance of -0.56%. The stock is currently trading at a discount compared to its peers, with a PEG ratio of 0.1, suggesting an attractive valuation relative to its historical averages.
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