Aurum Proptech Receives 'Hold' Rating from MarketsMOJO After Positive Results, But Long-Term Growth Remains a Concern

Aurum Proptech, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on April 30, 2024. This upgrade comes after the company reported positive results in March 2024, with a high debtors turnover ratio of 9.21 times, operating profit to interest ratio of 1.92 times, and net sales of Rs 59.81 crore.
Technically, the stock is currently in a mildly bullish range, with a 7.27% return since April 26, 2024. The MACD and Bollinger Band technical factors also indicate a bullish trend. However, it is worth noting that the majority shareholders of Aurum Proptech are non-institutional investors.

Despite the recent positive results, the company has shown poor long-term growth with a decline in net sales by an annual rate of -26.36% and operating profit by -198.87% over the last 5 years. This could be a cause for concern for potential investors.

Moreover, the stock is considered risky due to its negative operating profits and high dividend yield of 0. In the past year, while the stock has generated a return of 35.11%, its profits have decreased by -88.2%. This indicates that the stock may be trading at a higher risk compared to its historical valuations.

Overall, while Aurum Proptech has shown some positive developments, it is important for investors to carefully consider the company's long-term growth and risk factors before making any investment decisions.