Beardsell Receives 'Hold' Rating from MarketsMOJO After Strong Financial Performance

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 significant growth in PAT (HY) at Rs 5.47 crore, which has increased by 118.80%. Additionally, the company's operating cash flow (Y) has reached its highest at Rs 15.29 crore, and its ROCE (HY) is also at its peak of 18.23%.
Technically, the stock is in a bullish range and has shown improvement from mildly bullish to bullish on 12-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 its promoters, which adds to the company's stability and potential for growth. The stock has consistently outperformed BSE 500 in the last 3 annual periods and has generated a return of 90.74% in the last year.

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 slow 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. Despite the stock's impressive return of 90.74% in the last year, its profits have only increased by 143.3%, resulting in a low PEG ratio of 0.1.

In conclusion, while Beardsell has shown positive results in the short term, its long-term growth and fundamental strength may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.