Everest Organics Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Majority Ownership by Promoters.

Everest Organics, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's high management efficiency, with a return on capital employed (ROCE) of 5%. The stock is also currently in a mildly bullish range, with multiple technical indicators such as MACD, Bollinger Band, KST, DOW, and OBV showing positive signs.
One of the main reasons for the 'Hold' rating is the company's attractive valuation, with an enterprise value to capital employed ratio of 1.5. This indicates that the stock is trading at a discount compared to its historical valuations. Additionally, over the past year, the stock has generated a return of 25.99%, while its profits have increased by 32%. The company's PEG ratio of 0.6 further supports its attractive valuation.

It is worth noting that the majority of the company's shareholders are promoters, which can be seen as a positive sign for investors. However, Everest Organics has a high debt to EBITDA ratio of 0 times, indicating a low ability to service debt. This could be a concern for investors.

Furthermore, the company has shown poor long-term growth, with its operating profit declining at an annual rate of -19.09% over the last 5 years. In addition, the company's results for March 2024 were flat, with the interest growing at a rate of 37.05% and the debt-equity ratio at its highest at 1.22 times. The PBT less OI for the quarter was also at its lowest at Rs -0.14 crore.

In conclusion, while Everest Organics has received a 'Hold' rating from MarketsMOJO, investors should carefully consider the company's high debt and poor long-term growth before making any investment decisions. However, the company's attractive valuation and majority ownership by promoters could be seen as positive factors for potential investors.