Unjha Formulations Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results and Bullish Trend

Unjha Formulations, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on June 18, 2024. This upgrade comes after the company reported positive results in March 2024, with a 64.96% growth in net sales and a higher PAT of Rs 0.21 crore.
The stock is currently in a bullish range and has shown a 7.54% return since June 11, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST. The majority shareholders of the company are non-institutional investors.

Unjha Formulations has also shown a market-beating performance in the long term, with a return of 118.64% in the last year. It has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with a 2.11% 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 0.20.

The stock is currently trading at an expensive valuation, with a price to book value of 4.2 and a ROE of 9.9. It is also trading at a premium compared to its average historical valuations. Despite a 118.64% return in the past year, the company's profits have declined by -1%.

Overall, while Unjha Formulations has shown positive results and a bullish trend, its long-term fundamentals and valuation may be a cause for concern. Investors are advised to hold onto their positions for now and monitor the company's performance closely.