Alpine Housing Development Corporation Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and High Debt.
Alpine Housing Development Corporation, a microcap real estate company, has received a 'Sell' rating from MarketsMojo due to weak long-term fundamentals, high debt to EBITDA ratio, and low profitability. However, the company has shown positive results in the last 4 quarters and its stock may be undervalued. Investors should carefully consider their investment.
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.According to MarketsMOJO, Alpine Housing Development Corporation has shown a -3.80% CAGR growth in operating profits over the last 5 years, indicating a decline in its financial performance. The company also has a high debt to EBITDA ratio of 7.28 times, which raises concerns about its ability to service its debt.
In terms of valuation, the company has a very expensive ROCE of 6.3 and an enterprise value to capital employed ratio of 3.3. This suggests that the stock is trading at a premium compared to its historical valuations. However, it is currently trading at a discount, which could be a potential opportunity for investors.
On the positive side, Alpine Housing Development Corporation has declared positive results for the last 4 consecutive quarters. Its profits have risen by 219.8% in the past year, while the stock has generated a return of 58.41%. This has resulted in a PEG ratio of 0.4, indicating that the stock may be undervalued.
Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, KST, and DOW showing a bullish trend. The majority shareholders of the company are the promoters, which could be a positive sign for investors.
In the last 3 years, Alpine Housing Development Corporation has consistently generated returns and outperformed BSE 500. However, with the recent downgrade from MarketsMOJO, investors may want to carefully consider their investment in this microcap real estate company.
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