Beekay Steel Industries Upgraded to 'Hold' by MarketsMOJO, Strong Debt Servicing and Attractive Valuation

Beekay Steel Industries, a smallcap company in the steel/sponge iron/pig iron industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.55 times. Additionally, the stock is currently in a Mildly Bullish range and the technical trend has improved from Sideways on 19-Sep-24. The stocks MACD and Bollinger Band technical factors are also Bullish.
Furthermore, the company has an attractive valuation with a ROCE of 10.4 and a 1.4 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 17.16%, while its profits have risen by 29.8%. This gives the company a PEG ratio of 0.4.

However, Beekay Steel Industries has shown poor long-term growth, with Net Sales growing at an annual rate of 1.88% and Operating profit at 14.02% over the last 5 years. In the latest quarter, the company reported negative results, with INTEREST(HY) growing at 30.44%, OPERATING PROFIT TO INTEREST (Q) at its lowest at 8.72 times, and PBT LESS OI(Q) falling at -12.0%.

It is also worth noting that despite its size, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the price or the business, as domestic mutual funds have the capability to do in-depth on-the-ground research on companies.

In the last year, Beekay Steel Industries has underperformed the market, with a return of 17.16%, much lower than the market (BSE 500) returns of 34.74%. Overall, while the company has some positive factors, it also has some areas of concern that investors should consider before making any investment decisions.