MarketsMOJO Upgrades M K Proteins to 'Hold' Rating Based on Strong Management and Debt Servicing

M K Proteins, a microcap company in the solvent extraction industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's high management efficiency, with a ROCE of 27.04%, and its strong ability to service its debt, with an EBIT to Interest ratio of 11.36.
The company also has an attractive valuation, with a ROCE of 19.8 and an Enterprise value to Capital Employed ratio of 5.2. However, the stock is currently trading at a lower valuation compared to its historical average.

In the past year, M K Proteins has seen a decline in its stock price, generating a return of -59.20%. However, its profits have still managed to increase by 5%, resulting in a PEG ratio of 5.7. The majority shareholders of the company are its promoters.

The company's recent financial results for the quarter ending June 2024 have shown a decline in net sales by -24.76%. This has resulted in the stock being in a mildly bearish range. Additionally, the key technical factor, KST, has been bearish since September 9, 2024.

In the last year, M K Proteins has underperformed the market, with the BSE 500 generating returns of 33.83% while the stock has generated negative returns of -59.20%. Despite this, the company's strong management efficiency and ability to service its debt make it a 'Hold' for investors.