Polson . Receives Upgraded Stock Call from MarketsMOJO, Showing Improved Technical Trend and Bullish Factors

Polson ., a microcap chemical company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' due to its improved technical trend and multiple bullish factors.
The stock is currently in a bullish range and has shown improvement from being mildly bullish on July 1, 2024. Factors such as MACD, Bollinger Band, and KST have contributed to the bullish sentiment.

In terms of valuation, Polson . has an attractive ROCE of 6.5 and a low enterprise value to capital employed ratio of 1.4. The stock is also trading at a discount compared to its historical valuations. Over the past year, the stock has generated a return of 31.09%, while its profits have increased by 31%. The PEG ratio of the company stands at 1.2.

The majority shareholders of Polson . are the promoters, indicating their confidence in the company's future prospects. However, the company's long-term fundamental strength is weak with a negative CAGR growth in operating profits over the last 5 years. Additionally, its ability to service debt is poor with a low EBIT to interest ratio of 1.89. The return on equity is also low at 7.10%, indicating low profitability per unit of shareholders' funds.

In the latest quarter, Polson . has reported flat results with the lowest PBDIT and operating profit to net sales. The PBT less OI is also at its lowest at Rs 0.71 crore.

Overall, while the stock has shown improvement in its technical trend and has multiple bullish factors, its weak long-term fundamental strength and low profitability may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.