Bafna Pharmaceuticals Receives Upgraded Stock Rating from MarketsMOJO, Shows Strong Growth in Sales and Profits

Bafna Pharmaceuticals, a microcap company in the pharma industry, has recently received an upgraded stock call from MarketsMOJO. The stock is now rated as 'Hold' as of January 18, 2024.

The company has shown positive results for the last three consecutive quarters, with a significant growth in net sales and profits. In the last half year, the net sales have grown by 112.47% and the profits have increased by 197.31%. The return on capital employed (ROCE) is also at its highest at 19.99%.

Technically, the stock is in a mildly bullish range and has shown improvement from being mildly bearish on January 18, 2024. Multiple factors such as MACD, Bollinger Band, and KST are bullish for the stock.

At a ROCE of 17.7, the stock is attractively valued with a 2.7 enterprise value to capital employed. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 3.77%, while its profits have risen by 347.7%. The PEG ratio of the company is 0, indicating a good value for investors.

The majority shareholders of Bafna Pharmaceuticals are the promoters, which can be seen as a positive sign for the company's stability and growth.

However, the company has weak long-term fundamental strength with an average ROCE of 5.94%. The operating profit has only grown at an annual rate of 17.70% over the last five years, indicating poor long-term growth.

In the last year, the stock has underperformed the market, generating a return of only 3.77%, while the market (BSE 500) has seen a return of 24.61%. This may be a concern for investors, but the recent positive results and technical trends suggest a potential for growth in the future.