Lancor Holdings Receives 'Sell' Rating from MarketsMOJO Due to Weak Long-Term Fundamentals

Lancor Holdings, a microcap real estate company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on several factors that indicate weak long-term fundamental strength for the company.
One of the main reasons for the 'Sell' rating is the company's poor performance in terms of operating profits. Over the last 5 years, Lancor Holdings has only seen a -4.44% CAGR growth in operating profits. Additionally, the company has a high debt to EBITDA ratio of 13.55 times, indicating a low ability to service debt.

Moreover, Lancor Holdings has underperformed the market in the last 1 year, with a return of only 22.66% compared to the market's return of 32.89%. This further supports the 'Sell' rating.

On the positive side, the company has declared positive results for the last 8 consecutive quarters, with a growth of 45.43% in net sales and a higher PAT of Rs 5.90 cr. However, the technical trend for the stock is currently sideways, indicating no clear price momentum.

In terms of valuation, Lancor Holdings seems to be trading at a discount compared to its historical average. Its ROCE of 7.8 and PEG ratio of 0 also suggest an attractive valuation. Additionally, institutional investors have increased their stake in the company, indicating their confidence in its future prospects.

Overall, while Lancor Holdings may have some positive aspects, the 'Sell' rating from MarketsMOJO is based on the company's weak long-term fundamentals and underperformance in the market. Investors should carefully consider these factors before making any investment decisions.