Steel Strips Infrastructures Receives 'Hold' Rating

Steel Strips Infrastructures, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO on November 20, 2023. This upgrade comes after the company declared very positive results in September 2023, with a growth in net sales of 18.52%. The company has also shown positive results for the last two consecutive quarters, with a ROCE (HY) of 40.35% and a debtors turnover ratio (HY) of 6.71 times, both being the highest in the industry. Additionally, the company's PBT less OI (Q) is also the highest at Rs 24.30 crore.
Technically, the stock is in a bullish range and has shown a significant improvement since November 20, 2023, generating a return of 32.41%. Multiple factors such as MACD, Bollinger Band, KST, and OBV are all bullish for the stock.

The majority shareholders of Steel Strips Infrastructures are the promoters, indicating their confidence in the company's performance. The stock has also outperformed BSE 500 in the long term, generating a return of 48.41% in the last year.

However, the company's long-term fundamental strength is weak due to operating losses and a poor EBIT to interest ratio of -1.26, indicating a weak ability to service its debt. The company has also reported losses, resulting in a negative ROCE.

Moreover, the stock is trading at a risky level compared to its historical valuations. While it has generated a return of 48.41% in the past year, its profits have risen by 733.4%. Investors should carefully consider these factors before making any investment decisions regarding Steel Strips Infrastructures.