Hardcastle & Waud Mfg Co Receives 'Hold' Rating from MarketsMOJO Based on Strong Financial Performance and Bullish Indicators

Hardcastle & Waud Mfg Co, a microcap company in the paints industry, has recently received a 'Hold' rating from MarketsMOJO on August 7, 2024. This upgrade is based on the company's positive financial results for the past four consecutive quarters, with the highest ROCE (HY) at 6.79%, PBDIT (Q) at Rs 1.12 crore, and PBT LESS OI (Q) at Rs 0.96 crore.
The stock is currently in a bullish range and has shown a 7.09% return since August 5, 2024. Technical indicators such as MACD, Bollinger Band, KST, and DOW are also signaling a bullish trend for the stock.

The majority shareholders of Hardcastle & Waud Mfg Co are the promoters, indicating their confidence in the company's performance. The stock has consistently outperformed BSE 500 in the last three annual periods and has generated a return of 119.70% in the past year.

However, the company's long-term fundamental strength is weak, with a -1.04% CAGR growth in operating profits over the last five years. Its ability to service debt is also 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.

The stock is currently trading at a very expensive valuation with a price to book value of 1.4. However, it is at a fair value compared to its average historical valuations. The PEG ratio of the company is 0.2, indicating that its profits have risen by 117.2% in the past year, while the stock has generated a return of 119.70%.

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