United Van Der Horst Receives 'Hold' Rating After Strong Financial Results

United Van Der Horst, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company's positive financial results for the last 7 consecutive quarters. The company's net sales have grown by an impressive 51.26% to Rs 12.04 crore, with the highest PBDIT (Profit Before Depreciation, Interest, and Taxes) and PBT (Profit Before Tax) at Rs 2.28 crore and Rs 1.02 crore respectively.
Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on 17-May-24. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish trend for the stock. The majority shareholders of United Van Der Horst are its promoters, which adds to the company's stability and growth potential.

The stock has consistently outperformed BSE 500 in the last 3 annual periods and has generated a return of 108.83% in the last year. However, the company's long-term fundamental strength is weak, with an average Return on Capital Employed (ROCE) of 2.77%. Additionally, the company has a high Debt to EBITDA ratio of 5.89 times, indicating a low ability to service debt.

With a ROCE of 3.8, the stock is currently trading at a very expensive valuation with an Enterprise value to Capital Employed ratio of 3.3. However, it is still trading at a discount compared to its average historical valuations. While the stock has shown impressive returns in the past year, its profits have only risen by 60.5%, resulting in a PEG ratio of 1.5.

Overall, United Van Der Horst shows potential for growth with its consistent financial performance and bullish technical trend. However, investors should also consider the company's weak long-term fundamentals and high debt levels before making any investment decisions.