Jain Irrigation Systems Upgraded to 'Hold' by MarketsMOJO, Technical Trend Improves

Jain Irrigation Systems, a smallcap company in the agriculture industry, has recently been upgraded to a 'Hold' by MarketsMOJO. The stock is currently in a bullish range and the technical trend has improved from mildly bullish on August 26, 2024. This is due to multiple factors such as MACD, Bollinger Band, KST, and OBV being bullish.
In terms of valuation, the company has an attractive ROCE of 5.8 and a low enterprise value to capital employed ratio of 0.9. It is also trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 13.10%, while its profits have risen by 134%. This gives the company a PEG ratio of 0.6.

However, there are some concerns regarding the company's long-term fundamental strength. It has a negative CAGR growth in operating profits over the last 5 years and a high debt to EBITDA ratio of 9.73 times, indicating a low ability to service debt. The return on equity is also low at 1.08%, showing low profitability per unit of shareholders' funds.

In the latest quarter, the company's results were flat with a significant decrease in PBT, OI, and net sales. Additionally, 47.05% of promoter shares are pledged, which could put downward pressure on the stock prices in falling markets.

Overall, Jain Irrigation Systems has underperformed the market in the last year with a return of 13.10%, much lower than the market's return of 39.36%. While the stock is currently in a bullish range, investors should consider the company's weak long-term fundamentals and high promoter pledged shares before making any investment decisions.