Dhampure Speciality Sugars Receives 'Hold' Rating from MarketsMOJO, Shows Positive Growth and Bullish Trend

Dhampure Speciality Sugars, a microcap company in the sugar industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last 5 consecutive quarters, with a significant growth in its PAT (HY) at Rs 1.69 crore, which has increased by 838.89%. Additionally, the company's ROCE (HY) is at its highest at 16.12%, and its NET SALES (Q) have also reached a record high of Rs 8.54 crore.
Technically, the stock is in a bullish range, with its technical trend improving from Mildly Bullish on 19-Apr-24. Multiple factors, such as MACD, Bollinger Band, KST, and DOW, are also indicating a bullish trend for the stock.

The majority shareholders of Dhampure Speciality Sugars are its promoters, which adds to the company's stability and growth potential. The stock has consistently outperformed BSE 500 in the last 3 annual periods and has generated a return of 59.10% in the last 1 year.

However, the company's long-term fundamental strength is weak, with a -14.73% CAGR growth in Operating Profits over the last 5 years. Its ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of -0.16. The company's Return on Equity (avg) is at 4.13%, indicating low profitability per unit of shareholders' funds.

Moreover, with a ROE of 12.4, the stock is currently trading at a very expensive valuation, with a 3.2 Price to Book Value. It is also trading at a premium compared to its average historical valuations. Although the stock has generated a high return of 59.10% in the last year, its profits have only increased by 371%, resulting in a PEG ratio of 0.

In conclusion, while Dhampure Speciality Sugars has shown positive growth and a bullish trend, its weak long-term fundamentals and expensive valuation make it a 'Hold' for now. Investors should keep an eye on the company's future performance and reassess their investment decisions accordingly.