Kothari Fermentation & Biochem Receives 'Hold' Rating Amid Bullish Trend and Attractive Valuation

Kothari Fermentation & Biochem, a microcap FMCG company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved technically from mildly bullish to bullish on April 24, 2024. The stock has also shown multiple bullish factors such as MACD, Bollinger Band, and KST.
One of the main reasons for the 'Hold' rating is the stock's attractive valuation with a ROCE of 8.7 and an enterprise value to capital employed ratio of 1.6. Additionally, the stock is currently trading at a discount compared to its average historical valuations. Despite this, the stock has generated a return of 86.72% in the past year, with profits rising by 61.4%.

The majority shareholders of Kothari Fermentation & Biochem are the promoters, indicating their confidence in the company's performance. The stock has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with a -19.22% CAGR growth in operating profits over the last 5 years. The company also reported flat results in December 2023. Despite this, the stock's recent bullish trend and attractive valuation make it a 'Hold' for now. Investors should keep an eye on the company's future performance to make informed decisions.