Beardsell Receives 'Hold' Rating After Strong Quarterly Results and Bullish Technical Trend

Beardsell, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared positive results for the last 11 consecutive quarters, with a growth of 118.80% in PAT (HY) and the highest operating cash flow of Rs 15.29 crore (Y). The company's ROCE (HY) is also at its highest at 18.23%.
Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on 24-Jan-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV indicate a bullish trend for the stock.

The majority shareholders of Beardsell are the promoters, which adds to the company's stability. It has consistently generated returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods. In the last 1 year, the stock has generated a return of 95.20%.

However, the company's long-term fundamental strength is weak with an average ROCE of 8.27%. Its net sales have only grown at an annual rate of 4.94% over the last 5 years, indicating poor long-term growth. Additionally, the company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.46.

The stock is currently trading at an expensive valuation with an enterprise value to capital employed ratio of 2.2. However, it is still at a discount compared to its average historical valuations. While the stock has generated a high return of 95.20% in the past year, its profits have only risen by 143.3%, resulting in a low PEG ratio of 0.1.

Overall, Beardsell's recent upgrade to a 'Hold' rating by MarketsMOJO is based on its positive quarterly results and bullish technical trend. However, its weak long-term fundamental strength and expensive valuation should also be considered by investors.