Kimia Biosciences Receives Upgraded Stock Call from MarketsMOJO, Showing Positive Results in June 2024

Kimia Biosciences, a microcap pharmaceutical company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to a 'Hold' rating, indicating a neutral stance for investors.
The company has shown positive results in June 2024, with a higher profit after tax of Rs 3.24 crore. Its operating profit to interest ratio is also at its highest at 3.34 times. Additionally, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on September 10, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST.

The majority shareholders of Kimia Biosciences are its promoters. However, the company has a high debt-to-equity ratio of 9.59 times, indicating weak long-term fundamental strength. Its operating profit has also shown poor growth over the last 5 years, with an annual rate of -251.46%. The company's debt to equity ratio (average) is at 4.80 times, further highlighting its high debt.

In terms of profitability, Kimia Biosciences has a low return on capital employed (average) of 5.80%, indicating low profitability per unit of total capital. Its ROCE is also at -14.4, making its valuation expensive with a 5.2 enterprise value to capital employed.

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 36.84%, its profits have risen by 90.5%. This could be a positive sign for investors, but it is important to note the company's high debt and low profitability. Overall, MarketsMOJO's upgraded 'Hold' rating suggests a cautious approach for investors considering Kimia Biosciences.