Alpine Housing Development Corporation Receives 'Sell' Rating Due to Weak Fundamentals and High Debt

Alpine Housing Development Corporation, a microcap real estate company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, high debt to EBITDA ratio, and low profitability per unit of shareholders' funds.
Over the past 5 years, the company has only seen a -3.80% CAGR growth in operating profits, indicating a lack of growth potential. Additionally, its high debt to EBITDA ratio of 7.28 times raises concerns about its ability to service its debt. The company's return on equity (avg) of 4.41% also suggests low profitability.

Furthermore, with a ROCE of 6.3, the stock is currently overvalued with a 3.2 enterprise value to capital employed. However, it is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 62.38%, but its profits have only risen by 219.8%, resulting in a low PEG ratio of 0.4.

On a positive note, the company has declared positive results for the last 4 consecutive quarters, with a 139.78% growth in PAT (9M) and a 37.10% growth in net sales (HY). The stock is also technically in a mildly bullish range, with its MACD and KST technical factors showing a bullish trend.

The majority shareholders of Alpine Housing Development Corporation are its promoters, indicating their confidence in the company. Additionally, the stock has consistently outperformed the BSE 500 index in the last 3 annual periods, showcasing its potential for growth.

In conclusion, while Alpine Housing Development Corporation may have shown some positive results in the past year, its weak long-term fundamentals and high debt raise concerns about its future potential. Investors should carefully consider these factors before making any investment decisions.