Permanent Magnets Receives 'Hold' Rating, Shows Positive Growth

Permanent Magnets, a smallcap engineering company, has recently received a 'Hold' rating from MarketsMOJO. The company has shown positive results for the last 5 consecutive quarters, with a PAT (9M) of Rs 22.93 crore, growing at a rate of 28.03%. Its cash and cash equivalents (HY) are at a record high of Rs 23.67 crore, and its debtors turnover ratio (HY) is also at its highest at 4.19 times.
Technically, the stock is in a mildly bullish range, with the technical trend improving from sideways on 11-Oct-23 and generating -1.95% returns since then. Multiple factors, such as MACD, Bollinger Band, and KST, are bullish for the stock.

Institutional investors have also shown an increasing interest in the company, with their stake rising by 0.51% in the previous quarter. They collectively hold 0.52% of the company and have better resources to analyze the company's fundamentals.

Over the last 3 years, Permanent Magnets has consistently outperformed the BSE 500 index and has generated a return of 101.13%. However, with a ROE of 25.9, the stock is currently trading at a premium compared to its historical valuations. Its price to book value is 9.9, making it a very expensive stock. The PEG ratio of the company is 0.8, indicating that its profits have risen at a slower pace compared to its stock price.

Overall, Permanent Magnets shows promising growth potential with its positive financial results and increasing institutional interest. However, investors should carefully consider its expensive valuation before making any investment decisions.