Hindustan Bio Sciences Receives 'Sell' Rating from MarketsMOJO Based on ROCE and Valuation

Hindustan Bio Sciences, a microcap pharmaceutical and drugs company, has recently received a 'Sell' rating from MarketsMOJO on October 15, 2024. This downgrade is based on the company's ROCE (Return on Capital Employed) of 0.9, which indicates a very expensive valuation with an enterprise value to capital employed ratio of 3.7.
In addition, the stock is currently trading at a discount compared to its average historical valuations. Despite a 10% increase in profits over the past year, the stock has underperformed the market, generating a return of only 0.73% while the BSE 500 index has seen a return of 35.67%.

Other factors contributing to the 'Sell' rating include the company's positive results in June 2024, with PBDIT (Profit Before Depreciation, Interest, and Taxes) at its highest at Rs 0.07 crore, and PBT (Profit Before Tax) less OI (Other Income) also at its highest at Rs 0.07 crore. The company's PAT (Profit After Tax) is also at its highest at Rs 0.08 crore.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD (Moving Average Convergence Divergence), Bollinger Band, and KST (Know Sure Thing) indicating a bullish trend.

It is worth noting that the majority of shareholders in Hindustan Bio Sciences are non-institutional investors. With this recent downgrade, investors may want to carefully consider their options before making any decisions regarding this microcap company in the pharmaceutical and drugs industry.