Mawana Sugars Receives 'Hold' Rating After Positive Financial Results and Attractive Valuation

Mawana Sugars, a microcap company in the sugar industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company's positive financial results in March 2024, with a significant growth in PBT and PAT. The company's PBDIT has also reached its highest at Rs 81.40 crore.
Technically, the stock is in a mildly bullish range and its MACD and KST technical factors are also bullish. With a ROCE of 5.8, the company has a very attractive valuation and is currently trading at a discount compared to its historical valuations. In the past year, while the stock has generated a return of 6.16%, its profits have risen by 162.4%, resulting in a low PEG ratio of 0.1. Additionally, the company offers a high dividend yield of 3.7%.

The majority shareholders of Mawana Sugars are its promoters. However, the company has weak long-term fundamental strength with a negative CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio, indicating a low ability to service debt. The company's return on equity is also low, signifying low profitability per unit of shareholders' funds.

In the last 1 year, Mawana Sugars has underperformed the market, with a return of 6.16% compared to the market's return of 32.89%. While the company's recent financial results have shown improvement, its long-term fundamentals and performance in the market may be a cause for concern for potential investors. As such, MarketsMOJO has upgraded its rating to 'Hold' for Mawana Sugars.