Bansal Roofing Products Receives 'Hold' Rating from MarketsMOJO, Shows Strong Management Efficiency

Bansal Roofing Products, a microcap company in the construction material industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's high management efficiency, with a ROCE (Return on Capital Employed) of 19.73%. Additionally, the company has a low Debt to EBITDA ratio of 0.75 times, indicating a strong ability to service debt.
Technically, the stock is currently in a Mildly Bullish range, with the technical trend improving from Mildly Bearish on 12-Sep-24. The Bollinger Band and OBV technical factors are also Bullish, further supporting the 'Hold' rating.

The majority shareholders of Bansal Roofing Products are the promoters, indicating a strong belief in the company's potential. However, the company has shown poor long-term growth, with an annual operating profit growth rate of -2.67% over the last 5 years. In the latest quarter, the company's results were flat, with the lowest ROCE (Return on Capital Employed) at 16.79% and lowest net sales of Rs 24.04 crore.

With a ROCE of 16.5, the stock is currently trading at an expensive valuation, with a 3.7 Enterprise value to Capital Employed. However, it is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a negative return of -17.93%, while its profits have fallen by -28.7%.

In the last 1 year, Bansal Roofing Products has underperformed the market (BSE 500), which has generated a return of 36.29%. The stock, on the other hand, has generated negative returns of -17.93%. Despite this, MarketsMOJO has upgraded the stock to a 'Hold' rating, considering its strong management efficiency and technical factors. Investors should keep a close eye on the company's performance in the coming quarters to make informed decisions.