Shree Hari Chemicals Export Receives 'Hold' Rating from MarketsMOJO Based on Positive Financial Results

Shree Hari Chemicals Export, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on July 30, 2024. This upgrade is based on the company's positive financial results for the last 5 consecutive quarters.
The company's profits after tax (HY) have grown at an impressive rate of 112.07%, while its net sales (9M) have also shown a growth of 27.79%. Additionally, the stock is currently in a mildly bullish range and has shown a 6.1% return since July 24, 2024. Technical indicators such as MACD, Bollinger Band, KST, and OBV are all pointing towards a bullish trend for the stock.

Moreover, Shree Hari Chemicals Export has an attractive valuation with a ROCE of 2.6 and an enterprise value to capital employed ratio of 1.4. The stock is also trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 82.50%, while its profits have risen by 101.2%. This has resulted in a low PEG ratio of 0.4 for the company.

However, the majority shareholders of the company are non-institutional investors, which may pose a risk for potential investors. Furthermore, the company's long-term fundamental strength is weak with a -31.90% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also poor with a negative EBIT to interest ratio of -4.59. Additionally, the company's return on equity is low at 1.30%, indicating low profitability per unit of shareholders' funds.

In conclusion, while Shree Hari Chemicals Export has shown a strong performance in the past year, its long-term fundamentals and debt-servicing ability may be a cause for concern. Investors are advised to carefully consider these factors before making any investment decisions.