Haryana Leather Chemicals Downgraded to 'Sell' by MarketsMOJO, But Shows Positive Results

Haryana Leather Chemicals, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-08-12. This decision was based on several factors, including the company's weak long-term fundamental strength with an average Return on Equity (ROE) of 6.25%, poor long-term growth in net sales and operating profit, and a weak ability to service its debt with a poor EBIT to Interest (avg) ratio of 1.06.
However, the company has shown positive results for the last three consecutive quarters, with a higher PAT (HY) of Rs 3.02 crore and the highest ROCE (HY) at 13.79%. Additionally, the company's DEBTORS TURNOVER RATIO (HY) is also at its highest at 4.75 times.

From a technical standpoint, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. The company also has a fair valuation with a 1.3 Price to Book Value and is trading at a fair value compared to its average historical valuations.

In the past year, the stock has generated a return of 117.41%, while its profits have risen by 144.7%. This has resulted in a PEG ratio of 0.1, indicating a market-beating performance in both the long-term and near-term. The stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

Overall, while Haryana Leather Chemicals may have some weaknesses in its long-term fundamentals, it has shown positive results in recent quarters and has a fair valuation. Investors should carefully consider these factors before making any investment decisions.