MarketsMOJO upgrades Rana Sugars to 'Hold' based on healthy long-term growth and bullish technical indicators

Rana Sugars, a microcap company in the sugar industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 61.59%.
Technically, the stock is currently in a Mildly Bullish range, showing improvement from its previous Mildly Bearish trend. This is supported by multiple bullish factors such as MACD, Bollinger Band, KST, and OBV.

In terms of valuation, Rana Sugars has a very attractive ROCE of 5.1 and a low enterprise value to capital employed ratio of 0.8. It is also trading at a discount compared to its historical valuations. However, over the past year, the stock has only generated a return of 4.09%, while its profits have fallen by -55.9%.

The majority of the company's shareholders are non-institutional, which may indicate a lack of investor interest. Additionally, Rana Sugars has a high debt to EBITDA ratio of 4.88 times, which may affect its ability to service debt.

The company has also declared negative results for the last three consecutive quarters, with a significant decline in PBT and PAT. However, its interest expenses have increased by 70.80%.

Overall, Rana Sugars has underperformed the market in the last year, with a return of only 4.09% compared to the market's 38.60%. While the company has shown potential for long-term growth, its recent financial performance and high debt levels may be cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's progress closely.