Nagreeka Exports receives 'Hold' rating from MarketsMOJO, shows positive results in last 5 quarters

Nagreeka Exports, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last 5 consecutive quarters, with a growth of 48.92% in net sales and a higher PAT of Rs 4.75 crore in the last 9 months.
Technically, the stock is in a mildly bullish range and has shown improvement from a sideways trend on 04-Jul-24. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish trend for the stock. Additionally, with a ROCE of 5.7 and an attractive valuation of 0.9 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its historical valuations.

Moreover, the company's promoters have shown high confidence in the future of the business by increasing their stake by 4.45% in the previous quarter and currently holding 57.32% of the company. This is a positive sign for investors.

While the stock has generated a return of 44.52% in the past year, its profits have also risen by 97.4%, with a PEG ratio of 0.4. However, the company's long-term fundamental strength is weak, with a -10.43% CAGR growth in operating profits over the last 5 years. It also has a high Debt to EBITDA ratio of 11.89 times, indicating a low ability to service debt. The company's Return on Equity (avg) of 2.24% also signifies low profitability per unit of shareholders' funds.

Overall, Nagreeka Exports shows potential for growth in the short term, but its long-term fundamental strength may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.