Simran Farms Receives 'Hold' Rating from MarketsMOJO, Shows Growth in FMCG Market

Simran Farms, a microcap company in the FMCG industry, has recently received a 'Hold' rating from MarketsMOJO on November 21, 2024. This upgrade comes after the company reported positive results in September 2024, with its operating cash flow reaching a high of Rs 8.18 crore and its profit after tax increasing to Rs 8.96 crore.
In addition, Simran Farms has shown a growth of 25.4% in its net sales in the last quarter, making it a promising player in the FMCG market. The stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend.

With a ROCE of 14.5, the company has an attractive valuation and a low enterprise value to capital employed ratio of 1.8. It is also trading at a discount compared to its historical valuations. However, despite generating a return of 25.60% in the past year, the company's profits have declined by -51.2%.

The majority of Simran Farms' shareholders are non-institutional investors, indicating a strong interest from retail investors. The company has also consistently delivered returns over the last 3 years, outperforming the BSE 500 index.

However, the company's long-term fundamental strength is weak, with a -11.81% CAGR growth in operating profits over the last 5 years. Additionally, its ability to service its debt is poor, with a low EBIT to interest ratio of -0.35.

Overall, while Simran Farms shows potential in the FMCG industry, it is important for investors to carefully consider its weak long-term fundamentals and debt-servicing ability before making any investment decisions.