Konndor Industries Receives 'Hold' Rating from MarketsMOJO, Despite Recent Technical Trend Upgrade

Konndor Industries, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on July 25, 2024. This upgrade is based on the stock's technical trend, which has improved from Mildly Bullish to Bullish. The company's stock is currently trading at a premium compared to its historical valuations, with a Price to Book Value of 0.7 and a return on equity of 8.1%.
In the past year, Konndor Industries has generated a return of 40.77%, while its profits have increased by 48%. This has resulted in a PEG ratio of 0, indicating an attractive valuation for the company. However, the majority of the company's shareholders are non-institutional, which may indicate a lack of confidence from larger investors.

Despite the recent upgrade, Konndor Industries has weak long-term fundamental strength. Its return on equity has averaged at 2.46% and its net sales have declined by an annual rate of -28.69% over the last 5 years. Additionally, the company's ability to service its debt is weak, with a poor EBIT to Interest ratio of 0.28.

In the most recent quarter, the company's results were flat, with PBDIT(Q) and PBT LESS OI(Q) at their lowest levels of Rs 0.01 crore. The EPS(Q) also saw a decline to Rs 0.02. Overall, while the technical trend may be bullish, investors should consider the company's weak long-term fundamentals before making any investment decisions.