Bharat Parenterals Receives 'Hold' Rating from MarketsMOJO, Concerns Over Long-Term Growth and Valuation

Bharat Parenterals, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.02 times.
The stock is currently in a bullish range, with technical indicators such as MACD, Bollinger Band, KST, DOW, and OBV all showing positive trends. In the long term, the stock has outperformed the BSE 500 index, generating a return of 292.92% in the last year.

However, the company has shown poor long-term growth, with net sales and operating profit only growing at a rate of 3.33% and 4.16%, respectively, over the last 5 years. In the most recent quarter, the company's profits have fallen by -11.6%, with a PAT(Q) of Rs -0.30 cr and a ROCE(HY) of 6.19%.

The stock is currently trading at a premium compared to its historical valuations, with a ROCE of 3.9 and an enterprise value to capital employed ratio of 3. This may be a concern for investors, as the stock has already generated a return of 292.92% in the past year.

Interestingly, despite its small size, domestic mutual funds hold only 0% of the company. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while Bharat Parenterals has shown strong debt-servicing capabilities and short-term market performance, its long-term growth and high valuation may be a cause for concern for potential investors. It is important to carefully consider all factors before making any investment decisions.