Nikhil Adhesives Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Performance

Nikhil Adhesives, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on October 17, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.88 times.
In addition, the company has shown positive results in the quarter ending June 2024, with its operating profit to interest ratio at a high of 5.04 times, PBDIT at Rs 9.58 crore, and net sales at Rs 161.17 crore. These numbers indicate a strong financial performance for Nikhil Adhesives.

Technically, the stock is currently in a Mildly Bullish range, with the DOW also being Mildly Bullish since October 11, 2024. However, with a ROCE of 15.8, the stock is considered to have an expensive valuation, with an Enterprise value to Capital Employed ratio of 4.

Despite this, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, while the stock has generated a return of 10.93%, its profits have only risen by 6.4%. This results in a PEG ratio of 6.2 for the company.

It is worth noting that despite its small size, domestic mutual funds hold only 0% of Nikhil Adhesives. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

In the last year, Nikhil Adhesives has underperformed the market, with a return of 10.93% compared to the market's (BSE 500) return of 33.11%. This may be a cause for concern for potential investors, but it is important to note that the company is still showing positive growth and has a strong ability to service its debt. Overall, the stock is currently rated as a 'Hold' by MarketsMOJO.