Mawana Sugars Receives 'Hold' Rating from MarketsMOJO After Positive Q4 Results

Mawana Sugars, a microcap company in the sugar industry, has recently received a 'Hold' rating from MarketsMOJO on June 11, 2024. This upgrade comes after the company reported positive results in the quarter ending March 2024. The PBT LESS OI(Q) has grown by an impressive 755.7%, while the PAT(Q) has seen a growth of 336.8%. The PBDIT(Q) has also reached its highest at Rs 81.40 crore.
Technically, the stock is in a mildly bullish range and has shown improvement from a sideways trend on June 11, 2024. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish trend for the stock.

With a ROCE of 5.8, the stock is currently trading at an attractive valuation with an enterprise value to capital employed ratio of 1. This is a discount compared to its average historical valuations. In the past year, the stock has generated a return of 5.79%, while its profits have risen by 162.4%. The PEG ratio of the company stands at 0.1.

The majority shareholders of Mawana Sugars are the promoters, indicating their confidence in the company's performance.

However, the company has weak long-term fundamental strength with a -7.52% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 4.04 times, indicating a low ability to service debt. The return on equity (avg) of 4.23% also signifies low profitability per unit of shareholders' funds.

In the last 1 year, the stock has underperformed the market with a return of 5.79%, much lower than the market (BSE 500) returns of 36.93%. Investors are advised to hold their positions in Mawana Sugars and monitor its performance closely.