Bhatia Communications & Retail (India) Shows Positive Financial Results, Stock Upgraded to 'Hold' by MarketsMOJO

Bhatia Communications & Retail (India) is a microcap company in the trading industry. Recently, MarketsMOJO has upgraded its stock call to 'Hold' on 30th May 2024. This decision is based on the company's positive financial results for the last 6 consecutive quarters.
The company's net sales for the last 9 months have shown a growth of 23.01%, reaching Rs 311.16 crore. Its PBDIT (quarterly) has also reached its highest at Rs 4.45 crore, while PBT less OI (quarterly) has reached its highest at Rs 3.64 crore. With a ROCE of 13.7, the company has an attractive valuation with a 3.8 enterprise value to capital employed.

Moreover, 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 22.90%, while its profits have risen by 35.6%. The PEG ratio of the company is 0.6, indicating a good potential for future growth.

The majority shareholders of Bhatia Communications & Retail (India) are its promoters. However, the company has a low ability to service debt with a high debt to EBITDA ratio of -1.00 times. Its long-term growth has also been poor, with an annual growth rate of 17.10% for operating profit over the last 5 years.

From a technical standpoint, the stock is currently in a mildly bearish range. The technical trend has deteriorated from mildly bullish on 30th May 2024 and has generated -2.03% returns since then. Multiple factors, such as MACD, Bollinger Band, and KST, suggest a bearish outlook for the stock.

In conclusion, Bhatia Communications & Retail (India) has shown positive financial results and has an attractive valuation. However, its high debt and poor long-term growth may pose challenges for the company. Investors are advised to hold their positions and monitor the stock's performance closely.