Hardcastle & Waud Mfg Co Receives 'Hold' Rating from MarketsMOJO After Consistent Positive Results

Hardcastle & Waud Mfg Co, a microcap company in the paints industry, has recently received a 'Hold' rating from MarketsMOJO on October 1, 2024. This upgrade comes after the company has consistently shown positive results for the past four quarters, with the highest ROCE (HY) at 6.79% and PBDIT (Q) at Rs 1.12 crore. The stock is also technically in a bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a positive trend.
The majority shareholders of Hardcastle & Waud Mfg Co are the promoters, and the company has shown consistent returns over the last three years. In the past year alone, the stock has generated a return of 135.38%, outperforming BSE 500 in each of the last three annual periods.

However, the company's long-term fundamental strength is weak, with a -1.04% CAGR growth in operating profits over the last five years. Additionally, the company's ability to service its debt is poor, with a low EBIT to Interest (avg) ratio of 0.85. The Return on Equity (avg) of 1.75% also signifies low profitability per unit of shareholders' funds.

At a ROE of 7.1, the stock is considered to have a very expensive valuation with a 1.7 Price to Book Value. However, it is currently trading at a fair value compared to its average historical valuations. While the stock has generated a high return of 135.38% in the past year, its profits have only risen by 117.2%, resulting in a low PEG ratio of 0.2.

Overall, MarketsMOJO's 'Hold' rating for Hardcastle & Waud Mfg Co is based on its recent positive performance and technical indicators, but investors should also consider the company's weak long-term fundamental strength and expensive valuation.