B&A . Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability and Bullish Technical Trend.

B&A ., a microcap company in the tea/coffee industry, has recently received a 'Hold' rating from MarketsMOJO on July 9, 2024. This upgrade is based on several factors that indicate a positive outlook for the company.
One of the main reasons for the 'Hold' rating is the company's strong ability to service its debt. With a low Debt to EBITDA ratio of 1.35 times, B&A . is in a good position to manage its financial obligations.

In addition, the stock is currently in a bullish range and has shown improvement in its technical trend from Mildly Bullish on July 9, 2024. This is supported by multiple factors such as MACD, Bollinger Band, KST, and OBV.

Furthermore, B&A . has a fair valuation with a ROCE of 8.3 and an Enterprise value to Capital Employed ratio of 1.4. The stock is also trading at a discount compared to its average historical valuations, making it an attractive option for investors.

In terms of performance, B&A . has delivered market-beating returns in the long term as well as the near term. In the past year, the stock has generated a return of 157.70%, outperforming the BSE 500 index. Additionally, the company's profits have risen by 23.6%, with a PEG ratio of 0.8.

However, it is worth noting that B&A . has shown poor long-term growth, with its operating profit declining at an annual rate of -1.92% over the last 5 years. This could be a cause for concern for investors.

Moreover, the company has recently declared negative results in March 2024 after 1 consecutive positive quarters. The PAT(Q) has fallen by -642.9% at Rs -16.75 crore, while the NET SALES(Q) and PBDIT(Q) have also hit their lowest at Rs 37.71 crore and Rs -14.63 crore, respectively.

Overall, while B&A . has received a 'Hold' rating from MarketsMOJO, investors should carefully consider the company's long-term growth and recent negative results before making any investment decisions.