MarketsMOJO upgrades Rana Sugars to 'Hold' rating, shows potential for long-term growth

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, with an improved trend from Mildly Bearish on 12-Jun-24. The Bollinger Band and OBV technical factors also indicate a bullish trend.

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. The stock is currently trading at a discount compared to its average historical valuations. However, over the past year, the stock has generated a negative return of -0.89%, while its profits have fallen by -55.9%.

The majority shareholders of Rana Sugars are non-institutional investors. The company also has a high Debt to EBITDA ratio of 4.88 times, indicating a low ability to service debt.

In the last 3 consecutive quarters, Rana Sugars has declared negative results, with a significant decline in PBT LESS OI(Q) at Rs 15.94 cr and PAT(Q) at Rs 21.70 cr. However, the company's interest expenses have grown by 70.80%.

In the past year, Rana Sugars has underperformed the market, with negative returns of -0.89% compared to the market's 37.15% returns (BSE 500). Overall, while Rana Sugars shows potential for long-term growth, its current financial performance and high debt levels may be a cause for concern. Investors are advised to hold their positions and monitor the company's progress closely.