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

Brookfield India Real Estate Trust, a midcap company in the miscellaneous industry, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision is based on the company's weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 3.47%. Additionally, the company has a high Debt to EBITDA ratio of 7.04 times, indicating a low ability to service debt.
In the latest quarter, the company's results have been flat, with a decline of -63.95% in PAT (HY) at Rs 18.53 crore. The Debt-Equity ratio (HY) is also at its highest at 1.14 times, and the Operating Profit to Interest (Q) is at its lowest at 1.38 times. These factors contribute to the company's expensive valuation, with a 1.1 Enterprise value to Capital Employed and a premium trading price compared to its historical valuations.

In the past year, the stock has underperformed the market, generating a return of only 0.64% while the market (BSE 500) has seen a return of 37.27%. This further supports the 'Sell' rating given by MarketsMOJO.

On a technical level, the stock is currently in a bullish range, with the technical trend improving from Mildly Bullish on 13-Jun-24. The MACD and Bollinger Band technical factors are also bullish, indicating a potential positive trend in the near future.

In conclusion, based on the company's weak fundamental strength, high debt, and underperformance in the market, MarketsMOJO has downgraded the stock call on Brookfield India Real Estate Trust to 'Sell'. Investors should carefully consider these factors before making any investment decisions.