Hardcastle & Waud Mfg Co Receives 'Hold' Rating from MarketsMOJO, Showing Positive Short-Term Results

Hardcastle & Waud Mfg Co, a microcap company in the paints industry, has recently received a 'Hold' rating from MarketsMOJO on September 11, 2024. This upgrade comes after the company has consistently shown positive results for the last four quarters, with its ROCE (HY) reaching a high of 6.79% and PBDIT (Q) at Rs 1.12 crore.
The stock is currently in a bullish range and has shown improvement in its technical trend from mildly bullish to bullish on September 11, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST.

The majority shareholders of Hardcastle & Waud Mfg Co are its promoters, indicating their confidence in the company's performance. The stock has also outperformed BSE 500 in the last three annual periods, with a return of 82.74% in the last year alone.

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 its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 0.85. Additionally, the company's return on equity (avg) is at a low of 1.75%, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at a very expensive valuation, with a price to book value of 1.5 and a PEG ratio of 0.2. However, it is still at a fair value compared to its average historical valuations. While the stock has shown a return of 82.74% in the last year, its profits have only risen by 117.2%, resulting in a low PEG ratio.

In conclusion, while Hardcastle & Waud Mfg Co has shown positive results in the short term, its long-term fundamental strength and valuation may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.