MarketsMOJO Upgrades Shri Jagdamba Polymers to 'Hold' Based on Strong Management Efficiency and Debt Servicing Ability

Shri Jagdamba Polymers, a microcap company in the packaging industry, has recently been upgraded to a 'Hold' by MarketsMOJO on May 13, 2024. This decision was based on the company's high management efficiency, with a ROCE of 39.48%, and its strong ability to service debt, with a low Debt to EBITDA ratio of 0.31 times. Additionally, the company has a Very Attractive valuation with a 2.4 Price to Book Value and majority shareholders being the promoters.
However, the stock is currently trading at a premium compared to its average historical valuations and has underperformed the market in the last year with a return of only 4.08%. In fact, the company's profits have fallen by -4.8% in the past year, despite a 10.18% annual growth in Net Sales and 7.64% growth in Operating profit over the last 5 years.

In terms of technical analysis, the stock is currently in a Mildly Bearish range and the key technical factor, MACD, has been Bearish since May 13, 2024. The company's latest results in December 2023 also showed a decline in NET SALES(Q) at Rs 70.61 crore, falling by -9.6%.

While Shri Jagdamba Polymers may not have a strong long-term growth potential, it is still a company with a solid management efficiency and ability to service debt. Investors may want to hold onto their stocks for now and keep an eye on any future developments.