BNR Udyog Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Short Term

BNR Udyog, a microcap company in the BPO/ITeS industry, has recently received a 'Hold' rating from MarketsMOJO on February 6, 2024. This upgrade comes as the company has shown positive results for the last four consecutive quarters, with a higher PAT (HY) of Rs 4.62 crore and a record high ROCE (HY) of 56.53%. Additionally, the company's DEBTORS TURNOVER RATIO (HY) is also at its highest at 17.13 times.
Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on February 6, 2024. Multiple factors such as MACD, Bollinger Band, KST, and DOW are all indicating a bullish trend for the stock.

With a ROE of 53.9, the stock is fairly valued with a price to book value of 2.2. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 92.40%, while its profits have risen by an impressive 527%.

The majority shareholders of BNR Udyog are its promoters, indicating their confidence in the company's performance. The company has consistently delivered strong returns over the last three years, outperforming the BSE 500 index in each of the last three annual periods.

However, the company's long-term fundamental strength is weak, with an average ROE of 8.96%. Its operating profit has only grown at an annual rate of 18.23% over the last five years, indicating poor long-term growth. Additionally, the company's ability to service its debt is weak, with a poor EBIT to Interest (avg) ratio of 0.30.

Overall, while BNR Udyog has shown positive results in the short term, its long-term fundamentals and growth potential may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.