Bhaskar Agrochemicals Upgraded to 'Hold' by MarketsMOJO After Positive Results and Bullish Technical Indicators

Bhaskar Agrochemicals, a microcap company in the pesticides and agrochemical industry, has recently been upgraded to a 'Hold' by MarketsMOJO on May 13, 2024. This upgrade comes after the company declared very positive results in December 2023, with a growth in net sales of 20.06%. Additionally, the company has shown positive results for the last two consecutive quarters, with PBT LESS OI(Q) growing at 381.8% and PAT(Q) growing at 381.3%.
Technically, the stock is currently in a mildly bullish range and the trend has improved from sideways to bullish on May 13, 2024. A key technical factor, the MACD, has also been bullish since May 13, 2024. With a ROCE of 11.9, the company has an attractive valuation with a 1.6 enterprise value to capital employed. The stock is also trading at a discount compared to its average historical valuations. Despite generating a return of -15.96% in the past year, the company's profits have risen by 76%, resulting in a low PEG ratio of 0.2.

However, Bhaskar Agrochemicals also has some weak fundamental strengths. Over the last 5 years, the company has only shown a 5.52% CAGR growth in net sales, indicating a weak long-term performance. The company also has a high debt to EBITDA ratio of 0 times, which may affect its ability to service debt. In terms of profitability, the company has a low return on equity (avg) of 8.10%.

In the past year, Bhaskar Agrochemicals has underperformed the BSE 500 and has also shown below par performance in the last 3 years, 1 year, and 3 months. The majority shareholders of the company are the promoters, which may indicate a lack of interest from other investors.

Overall, while Bhaskar Agrochemicals has shown positive results in the recent quarters and has an attractive valuation, its weak long-term performance and high debt may be a cause for concern. Investors may want to hold onto their stocks for now and monitor the company's performance in the future.