Brookfield India Real Estate Trust Downgraded to 'Hold' by MarketsMOJO

Brookfield India Real Estate Trust, a midcap company in the miscellaneous industry, has recently been downgraded to a 'Hold' by MarketsMOJO. This decision was based on the company's healthy long-term growth, with a 79.97% annual growth in net sales and 43.35% growth in operating profit. The company also declared very positive results in June 2024, with a 752.71% growth in net profit and its highest operating cash flow of Rs 1,432.83 crore.
However, the stock is currently in a mildly bullish range and has a high debt to EBITDA ratio of 7.88 times, indicating a low ability to service debt. Additionally, the company has a low return on equity of 1.45%, showing low profitability per unit of shareholders' funds. Its ROCE of 4.6 also signifies a very expensive valuation with an enterprise value to capital employed ratio of 1.1.

Despite the stock trading at a discount compared to its historical valuations, it has underperformed the market in the last year with a return of only 8.21%, while the market (BSE 500) has generated a return of 39.22%. Therefore, MarketsMOJO has downgraded the stock to a 'Hold' and advises investors to carefully consider the company's financials before making any investment decisions.