United Van Der Horst Receives 'Sell' Rating, But Shows Positive Growth and Consistent Returns

United Van Der Horst, a microcap engineering company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, 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.
The stock is also considered to be very expensive, with a ROCE of 3.8 and an enterprise value to capital employed ratio of 3.2. However, it is currently trading at a discount compared to its average historical valuations. Despite generating a return of 88.57% in the past year, the company's profits have only risen by 60.5%, resulting in a PEG ratio of 1.4.

On a positive note, United Van Der Horst has declared positive results for the last 7 consecutive quarters. Its net sales have grown at an impressive rate of 51.26%, reaching Rs 12.04 crore. The company's PBDIT (Quarterly) is also at its highest at Rs 2.28 crore, while PBT LESS OI (Quarterly) is at Rs 1.02 crore.

From a technical standpoint, the stock is currently in a mildly bullish range. 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, indicating their confidence in the company's future prospects. The company has also consistently generated returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

In conclusion, while United Van Der Horst may have received a 'Sell' rating from MarketsMOJO, the company has shown positive growth and consistent returns in recent years. Investors should carefully consider all factors before making any investment decisions.