Raja Bahadur International Receives Upgraded Stock Call from MarketsMOJO, Showing Positive Results and Bullish Technical Trend

Raja Bahadur International, a microcap company in the textile industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on September 9, 2024.
The upgrade is based on the company's positive results in the first half of 2024. The company's profit after tax has increased to Rs 0.27 crore, while its return on capital employed has reached a high of 7.09%. Additionally, the net sales for the quarter have also seen a significant increase, reaching Rs 7.19 crore.

From a technical standpoint, the stock is currently in a bullish range. The technical trend has improved from mildly bullish to bullish on September 9, 2024. The stock's MACD and KST technical factors are also showing a bullish trend.

In terms of market performance, Raja Bahadur International has outperformed the market (BSE 500) with a return of 112.32% in the last year, compared to the market's return of 33.83%.

However, the company's high debt (debt-equity ratio at 11.19 times) is a cause for concern. The company also has a high debt to equity ratio (average) of 14.32 times. This indicates a weak long-term fundamental strength for the company. Additionally, the company's return on capital employed (average) is at a low of 2.04%, indicating low profitability per unit of total capital.

With a ROCE of 6.4, the company's valuation is considered to be very expensive, with an enterprise value to capital employed ratio of 2.3. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite the stock's impressive return of 112.32% in the past year, its profits have only increased by 116.7%. This results in a PEG ratio of 1.8, indicating that the stock may be slightly overvalued.

Overall, while Raja Bahadur International has shown positive results and a bullish technical trend, its high debt and expensive valuation may be a cause for concern for potential investors. MarketsMOJO's upgraded stock call to 'Hold' reflects a neutral stance on the company's future potential.