Kothari Fermentation & Biochem Upgraded to 'Hold' by MarketsMOJO After Positive Results and Strong Technical Trend

Kothari Fermentation & Biochem, a microcap company in the FMCG industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on 19th August 2024.
The company has shown positive results in the quarter ending June 2024, with its PAT (Q) reaching the highest at Rs 1.10 crore and EPS (Q) at Rs 0.73. This has contributed to the stock's technical trend, which has improved from Sideways to Mildly Bullish on 19th August 2024. The MACD and KST technical factors also indicate a Bullish trend for the stock.

Kothari Fermentation & Biochem has an attractive valuation with a ROCE of 8.7 and a 1.5 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 43.89%, while its profits have increased by 59.4%.

The majority shareholders of the company are the promoters, which adds to the stability and confidence in the stock. However, the company has shown weak long-term fundamental strength with a -19.22% CAGR growth in Operating Profits over the last 5 years.

Overall, with the recent positive results and technical trend, Kothari Fermentation & Biochem's stock has been upgraded to 'Hold' by MarketsMOJO. While the company's long-term fundamental strength may be a concern, the stock's attractive valuation and strong performance in the past year make it a promising investment option for investors.