Lancor Holdings Receives 'Hold' Rating and Shows Positive Results for 8 Consecutive Quarters

Lancor Holdings, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last 8 consecutive quarters. In the last 9 months, the company's net sales have grown by 28.15% to reach Rs 110.40 crore, while its PAT has also increased to Rs 7.18 crore. Additionally, its PBDIT for the quarter is at its highest at Rs 9.15 crore.
Technically, the stock is currently in a mildly bullish range and has shown improvement from being mildly bearish on 31-Jul-24. The Bollinger Band, a key technical factor, has been bullish since 31 Jul 2024. With a ROCE of 7.8, the stock is attractively valued with a 1.9 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 33.17%, while its profits have risen by 868%. The PEG ratio of the company is 0, indicating a good value for investors.

Institutional investors have also shown an increasing interest in Lancor Holdings, with a 0.74% increase in their stake over the previous quarter. They now collectively hold 2.3% of the company, indicating their confidence in its fundamentals.

However, the company does have some weak points in its long-term fundamental strength. It has shown a -4.44% CAGR growth in operating profits over the last 5 years, and has a high debt to EBITDA ratio of 13.55 times, indicating a low ability to service debt. The company's return on equity (avg) is also low at 0.34%, signifying low profitability per unit of shareholders' funds.

Overall, while Lancor Holdings has shown positive results and has attracted institutional investors, it also has some weak points that investors should consider before making any investment decisions. With the current 'Hold' rating, it may be a good idea to wait and see how the company performs in the coming quarters before making any investment decisions.