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

Lancor Holdings, a microcap real estate company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on several factors that indicate a weak long-term outlook for the company.
One of the main reasons for the 'Sell' rating is the company's weak fundamental strength. Over the past 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. This is a cause for concern for investors.

Furthermore, Lancor Holdings has a low profitability per unit of shareholders' funds, with a Return on Equity (avg) of only 0.34%. This suggests that the company is not generating enough profits for its shareholders.

From a technical standpoint, the stock is currently in a Mildly Bearish range. The technical trend has deteriorated since 18-Jul-24, when it was Mildly Bullish, and has since generated -3.18% returns. Multiple factors, such as Bollinger Band, KST, and OBV, are also indicating a bearish outlook for the stock.

On the positive side, Lancor Holdings has declared positive results for the last 8 consecutive quarters. Its net sales have grown at an impressive rate of 45.43% and its PAT (HY) is higher at Rs 5.90 cr. Additionally, the company has a ROCE of 7.8, making it an attractive valuation with a 1.8 Enterprise value to Capital Employed.

Moreover, the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 30.19% over the past year, its profits have risen by a staggering 868%. This is reflected in the company's low PEG ratio of 0.

It is worth noting that the majority shareholders of Lancor Holdings are its promoters, which may indicate their confidence in the company's future prospects. However, based on the current data and analysis, MarketsMOJO has downgraded the stock to 'Sell'. Investors should carefully consider these factors before making any investment decisions.