Beryl Drugs Receives 'Hold' Rating from MarketsMOJO, Technical Indicators Suggest Bullish Trend

Beryl Drugs, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on September 6th, 2024. This upgrade is based on various technical indicators that suggest a bullish trend for the stock.
One of the main reasons for the 'Hold' rating is the stock's current position in a bullish range. The technical trend has also improved from mildly bullish to bullish on September 6th, indicating positive momentum for the stock. Additionally, factors such as MACD, Bollinger Band, KST, and OBV are all showing bullish signals.

From a valuation perspective, Beryl Drugs seems to be an attractive investment with a ROCE (Return on Capital Employed) of 14 and an enterprise value to capital employed ratio of 1.8. Moreover, the stock is currently trading at a discount compared to its historical valuations.

However, it is important to note that while the stock has generated a return of 63.99% in the past year, its profits have declined by -43.9%. This could be a cause for concern for potential investors.

Beryl Drugs is primarily owned by non-institutional shareholders, indicating a lack of interest from big investors. However, the stock has shown market-beating performance in the long term as well as the near term, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

On the other hand, the company's long-term fundamental strength seems weak with an average ROCE of 5.27%. Its net sales have only grown at an annual rate of 14.04% and operating profit at 0.44% over the last 5 years, indicating poor long-term growth. Additionally, Beryl Drugs has a high debt to EBITDA ratio of 3.04 times, suggesting a low ability to service debt.

In the latest quarter, the company's results have been flat, with net sales of Rs 9.50 crore, showing a decline of -33.43%. This could be a red flag for investors and something to keep an eye on in the future.

Overall, while Beryl Drugs may seem like an attractive investment with its current bullish trend and attractive valuation, its weak long-term fundamentals and recent decline in profits should also be considered before making any investment decisions.