Raghuvir Synthetics Upgraded to 'Hold' by MarketsMOJO, Shows Strong Quarterly Growth

Raghuvir Synthetics, a microcap company in the textile industry, has recently been upgraded to a 'Hold' by MarketsMOJO. The company has shown outstanding results in the last quarter, with a growth in net profit of 171.88%. This positive trend has been consistent for the past 4 quarters, with the company's net sales and operating profit reaching their highest levels.
Technically, the stock is in a mildly bullish range and the technical trend has improved from sideways on 26-Jul-24. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish outlook for the stock.

However, the company's long-term fundamental strength is weak, with a -245.62% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is poor, with a negative EBIT to interest ratio. The return on equity is also low, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at a discount compared to its average historical valuations, with an expensive valuation of 9.3 enterprise value to capital employed. Despite a 147.7% increase in profits in the past year, the stock has only generated a return of 1.84%, resulting in a PEG ratio of 0.8.

It is worth noting that despite its small size, domestic mutual funds hold only 0% of the company, which could indicate a lack of comfort with the stock's price or business. Additionally, Raghuvir Synthetics has underperformed the market in the last year, with a return of 1.84% compared to the BSE 500's return of 36.61%.

Overall, while the recent results and technical indicators suggest a hold on the stock, the weak long-term fundamentals and underperformance in the market may warrant further research before making any investment decisions.