Hariyana Ship Breakers Receives 'Hold' Rating from MarketsMOJO, Reports Strong Growth in Net Sales.

Hariyana Ship Breakers, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on January 10, 2024. This upgrade comes after the company reported very positive results in September 2023, with a growth in net sales of 60.89%. The company's net sales for the quarter were the highest at Rs 90.84 crore, while its PBT LESS OI (Q) and PAT (Q) were also at their highest at Rs 3.66 crore and Rs 5.92 crore, respectively.
Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on January 10, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

The majority shareholders of Hariyana Ship Breakers are its promoters, which is a positive sign for investors. The stock has also shown market-beating performance in the long term, generating 64.18% returns in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with a -121.77% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also poor, with a low EBIT to Interest (avg) ratio of 0.91. Additionally, the company's return on equity (avg) is only 3.76%, indicating low profitability per unit of shareholders' funds.

Investing in Hariyana Ship Breakers may also be considered risky as the stock is currently trading at a higher valuation compared to its historical average. While the stock has generated a return of 64.18% in the past year, its profits have only risen by 328.1%, resulting in a PEG ratio of 0. This suggests that the stock may be overvalued and investors should proceed with caution.