Ansal Buildwell Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Recent Quarters

Ansal Buildwell, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO on July 18, 2024. This upgrade comes as the company has shown positive results for the last three consecutive quarters. Its net sales for the half year have increased to Rs 27.07 crore, while its profits have also seen a rise to Rs 11.07 crore.
Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. Additionally, with a return on equity of 11.8%, the company has a very attractive valuation with a price to book value of 0.8. It is also trading at a discount compared to its historical valuations.

Over the past year, Ansal Buildwell's stock has generated a return of 91.87%, outperforming the market (BSE 500) returns of 36.87%. This market-beating performance can be attributed to the majority shareholders being promoters of the company.

However, the company's long-term fundamental strength is weak, with operating losses and a poor EBIT to interest ratio of 1.32. Its ability to service its debt is also a concern. The company has only been able to generate a low return on equity of 3.50%, indicating low profitability per unit of shareholders' funds.

Overall, while Ansal Buildwell's stock has shown strong performance in the past year, its long-term fundamentals and debt-servicing ability may be a cause for concern. Investors are advised to hold onto their positions for now and monitor the company's future performance closely.