Aarey Drugs & Pharmaceuticals Receives 'Hold' Rating from MarketsMOJO After Positive Q1 Results

Aarey Drugs & Pharmaceuticals, a microcap company in the trading industry, has recently received a 'Hold' rating from MarketsMOJO on August 12, 2024. This upgrade comes after the company reported positive results in the quarter ending March 2024, with the highest PAT (profit after tax) of Rs 2.15 crore, highest net sales of Rs 210.35 crore, and highest EPS (earnings per share) of Rs 0.77.
Technically, the stock is currently in a Mildly Bullish range, showing an improvement from its previous Mildly Bearish trend on August 7, 2024. Since then, the stock has generated a return of 3.48%. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are also indicating a bullish trend for the stock.

In terms of valuation, Aarey Drugs & Pharmaceuticals has a very attractive ROCE (return on capital employed) of 0 and is trading at a fair value compared to its historical average. Additionally, the company's profits have risen by 59.4% in the past year, while the stock has generated a return of 7.27%. This gives the company a low PEG (price/earnings to growth) ratio of 0.4.

However, there are some concerns regarding the company's fundamental strength. With operating losses, Aarey Drugs & Pharmaceuticals has a weak long-term fundamental strength. Its return on equity (avg) is also low at 5.23%, indicating low profitability per unit of shareholders' funds.

In the last year, the stock has underperformed the market, generating a return of only 7.27% compared to the market's (BSE 500) return of 35.35%. Additionally, there has been a decrease in promoter holding, with the current holding at 45.28% of the company.

Overall, while Aarey Drugs & Pharmaceuticals has shown positive results and a bullish trend, there are some concerns regarding its fundamental strength and underperformance in the market. Investors may want to hold onto their positions for now and monitor the company's performance in the future.