Kachchh Minerals Receives 'Hold' Rating from MarketsMOJO After Positive Results and Bullish Trend

Kachchh Minerals, a microcap company in the mining and minerals industry, has recently received a 'Hold' rating from MarketsMOJO on February 6, 2024. This upgrade comes after the company reported positive results in September 2023, with its PBDIT(Q), PBT LESS OI(Q), and PAT(Q) reaching their highest levels at Rs 0.25 cr, Rs 0.22 cr, and Rs 0.22 cr respectively.
The stock is currently in a bullish range and has shown a 5% return since the technical trend improved from Mildly Bullish on February 5, 2024. This is supported by multiple factors such as MACD, Bollinger Band, KST, and OBV.

The majority shareholders of Kachchh Minerals are non-institutional investors, and the stock has shown market-beating performance in both the long term and near term. In the last 1 year, it has generated a return of 43.87% and has outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with a CAGR growth of only 8.59% in operating profits over the last 5 years. Additionally, its ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of 0.27.

With a ROE of 12.7, Kachchh Minerals has a very expensive valuation with a price to book value of 9.8. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 43.87%, its profits have fallen by -1%.

Overall, MarketsMOJO has upgraded Kachchh Minerals to a 'Hold' rating, taking into consideration its recent positive results and bullish technical trend. However, investors should also be aware of the company's weak long-term fundamental strength and expensive valuation.