Suraj Products Receives 'Hold' Upgrade from MarketsMOJO, Showing Promising Growth and Technical Trends

Suraj Products, a microcap company in the iron and steel industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on July 16, 2024.
The decision to upgrade the stock to 'Hold' is based on several factors. Firstly, the company has shown healthy long-term growth with an annual increase of 24.26% in net sales and 31.12% in operating profit. Additionally, the technical trend of the stock has improved from Mildly Bullish to Bullish on July 15, 2024. This is supported by various indicators such as MACD, Bollinger Band, KST, DOW, and OBV.

Furthermore, Suraj Products has a fair valuation with a price to book value of 6.8 and a return on equity of 24.7. The stock is currently trading at a discount compared to its historical valuations, making it an attractive option for investors. In the past year, the stock has generated a return of 301.61%, while its profits have increased by 11.2%. However, the PEG ratio of the company is 2.5, indicating that it may be slightly overvalued.

Despite its consistent returns over the last three years, the company recently declared negative results in March 2024 after four consecutive positive quarters. The profit after tax has fallen by 23.5% and net sales have decreased by 10.30%. The PBDIT (Profit Before Depreciation, Interest, and Taxes) has also reached its lowest at Rs 10.92 crore.

It is worth noting that despite its small size, domestic mutual funds hold only 0% of Suraj Products. This could be due to their ability to conduct in-depth research on companies and their hesitation to invest in the company at its current price or due to concerns about its business.

In conclusion, Suraj Products has shown promising growth and technical trends, making it a 'Hold' for investors. However, the recent negative results and low interest from domestic mutual funds should also be considered before making any investment decisions.