Supreme Holdings & Hospitality Receives 'Hold' Rating from MarketsMOJO After Positive Results in June 2024

Supreme Holdings & Hospitality, a microcap real estate company, has recently received a 'Hold' rating from MarketsMOJO on August 16, 2024. This upgrade comes after the company declared positive results in June 2024, following two consecutive negative quarters.
One of the key factors contributing to this upgrade is the company's low Debt to Equity ratio, which stands at 0.05 times on average. This indicates a healthy financial position and a lower risk for investors.

Furthermore, the company's net sales have shown a significant growth of 70.79% in the last quarter, reaching Rs 23.21 crore. The PBDIT (Profit Before Depreciation, Interest, and Taxes) has also reached its highest at Rs 4.50 crore, while the PBT (Profit Before Tax) less OI (Other Income) has also shown a significant increase at Rs 4.40 crore.

From a technical standpoint, the stock is currently in a bullish range and has shown an improvement from a sideways trend on August 16, 2024. Multiple technical indicators such as MACD, Bollinger Band, and KST also suggest a bullish outlook for the stock.

However, the company's management efficiency has been a cause for concern, with a low Return on Equity (ROE) of 4.40%. This indicates a low profitability per unit of shareholders' funds. Additionally, with an ROE of 1.4, the stock is currently trading at a premium compared to its average historical valuations, with a price to book value of 0.6.

In the past year, while the stock has generated a return of 1.49%, its profits have fallen by -17.1%. This underperformance in the market has also been reflected in the stock's returns, which are much lower than the market (BSE 500) returns of 36.18%.

It is worth noting that the majority shareholders of Supreme Holdings & Hospitality are the promoters, which may indicate a strong belief in the company's future prospects. However, it is important to consider all factors before making any investment decisions.