Prime Property Development Corporation Receives 'Sell' Rating from MarketsMOJO, Weak Fundamental Strength Raises Concerns.

Prime Property Development Corporation, a microcap company in the construction and real estate industry, has recently received a 'Sell' rating from MarketsMOJO on September 20, 2024.
The company's weak long-term fundamental strength is a major factor in this downgrade, with operating losses and a poor EBIT to Interest ratio of -3.43 indicating a weak ability to service its debt. Additionally, the company's return on equity is only 3.62%, showing low profitability per unit of shareholders' funds.

In the latest quarter, the company's profits have fallen by 90.2% and its PBDIT is at its lowest at -0.62 cr. The operating profit to net sales ratio is also at its lowest at 0.00%. These results suggest a flat performance for the company in the recent quarter.

On a positive note, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish. However, with a ROE of 8.4, the stock is currently trading at a very attractive valuation with a price to book value of 0.8. It is also trading at a discount compared to its average historical valuations.

Majority shareholders of the company are promoters, which may raise concerns for investors. However, the company has shown market-beating performance in the long term as well as the near term, with a return of 63.42% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months. The PEG ratio of the company is also at a low 0.4, indicating potential for future growth.

Overall, with the recent downgrade to 'Sell' and weak fundamental strength, investors may want to carefully consider their investment in Prime Property Development Corporation.