MarketsMOJO Upgrades Khaitan Chemicals & Fertilizers to 'Hold' Rating Amid Bullish Trend and Attractive Valuation

Khaitan Chemicals & Fertilizers, a microcap company in the fertilizer industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and multiple technical indicators are pointing towards a positive outlook.
One of the main reasons for the 'Hold' rating is the attractive valuation of the company. With a ROCE of 5.2 and an Enterprise value to Capital Employed ratio of 1.8, the stock is trading at a discount compared to its historical valuations. However, it is important to note that the stock has underperformed the market in the last year, generating a return of only 0.30%.

The company has also declared negative results for the last two consecutive quarters, with a fall in Net Sales of -30.17%. This has led to a decrease in profits by -87.7%. The lowest operating cash flow of Rs -88.16 Cr and a fall in net sales of -30.17% in the last quarter further highlight the company's current financial situation.

Despite being a microcap company, domestic mutual funds hold only 0.02% of the company. This could indicate that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

Overall, while the technical trend for Khaitan Chemicals & Fertilizers is bullish, the company's financial performance and lack of interest from domestic mutual funds suggest a cautious approach. Investors may want to hold onto their current positions and monitor the company's performance closely before making any further decisions.