Mihika Industries receives 'Hold' rating from MarketsMOJO after positive Q3 results

Mihika Industries, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on November 12, 2024. This upgrade comes after the company reported positive results in September 2024, with a higher net sales of Rs 6.42 crore and the highest PBDIT of Rs 0.33 crore in the quarter. The stock is currently in a bullish range and has shown a 2.66% return since October 25, 2024.
The technical trend for Mihika Industries has improved from mildly bullish to bullish, with multiple factors such as MACD, Bollinger Band, and KST indicating a positive outlook. The majority shareholders of the company are non-institutional investors.

In terms of returns, Mihika Industries has consistently outperformed the BSE 500 index in the last 3 annual periods, with a 31.83% return in the last 1 year. However, the company's long-term fundamental strength is weak, with an average Return on Equity (ROE) of 0% and poor growth in operating profit over the last 5 years.

Furthermore, Mihika Industries' ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of -2.02. Therefore, MarketsMOJO has recommended a 'Hold' rating for the stock, taking into consideration both its positive short-term performance and weak long-term fundamentals. Investors are advised to carefully evaluate the risks before making any investment decisions.