Luharuka Media & Infra Receives 'Hold' Rating from MarketsMOJO, Reports Positive Q2 Results

Luharuka Media & Infra, a microcap company in the films and entertainment industry, has recently received a 'Hold' rating from MarketsMOJO on August 13, 2024. This upgrade comes after the company reported positive results in the quarter ending June 2024, with its PBDIT(Q), PBT LESS OI(Q), and PAT(Q) reaching their highest levels at Rs 0.83 cr, Rs 0.82 cr, and Rs 0.61 cr respectively.
The stock is currently in a bullish range, with its technical trend improving from sideways on August 13, 2024. The MACD and KST technical factors also indicate a bullish trend. The majority shareholders of Luharuka Media & Infra are its promoters, which adds to the company's stability and potential for growth.

Over the last 3 years, the stock has consistently outperformed the BSE 500 index, generating a return of 62.69%. However, the company's long-term fundamental strength is weak, with a CAGR growth of only 18.99% in net sales over the last 5 years. Its ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 0.56. Additionally, the company's return on equity (avg) is only 2.04%, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at a premium compared to its historical valuations, with a price to book value of 6.6. Its ROE of 6.9 also suggests a very expensive valuation. However, despite this, the stock has still managed to generate a return of 62.69% in the past year, with profits rising by 41%. Investors should carefully consider these factors before making any investment decisions regarding Luharuka Media & Infra.