Bhandari Hosiery Exports Receives 'Hold' Rating Amid Bullish Trend and Attractive Valuation

Bhandari Hosiery Exports, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on March 6, 2024. This upgrade comes as the stock has shown a bullish trend, with a technical improvement since January 8, 2024, resulting in a 30.88% return. The stock's MACD and KST technical factors are also in a bullish range.
Despite its attractive valuation with a ROCE of 9.8 and a 1.4 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its historical valuations. However, its profits have fallen by -6.2% over the past year, even though it has generated a return of 100.43%.

The majority shareholders of Bhandari Hosiery Exports are non-institutional investors, and the stock has shown market-beating performance in both the long term and near term. In addition to its 100.43% return in the last year, it has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with an average ROCE of 8.93%. Its growth has been poor, with a 3.73% annual growth in net sales and 6.42% in operating profit over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 4.84 times, indicating a low ability to service debt.

In the latest quarter, Bhandari Hosiery Exports reported flat results, with a -15.1% decrease in net sales and the lowest operating profit to interest ratio of 2.20 times. Overall, while the stock has shown a bullish trend and attractive valuation, its long-term fundamental strength and ability to service debt are areas of concern. Investors may want to hold onto their positions for now and monitor the company's performance closely.