Vishwaraj Sugar Industries Upgraded to 'Hold' Rating by MarketsMOJO

Vishwaraj Sugar Industries, a microcap company in the sugar industry, has recently been upgraded to a 'Hold' rating by MarketsMOJO on September 12, 2024. This upgrade is based on various technical factors, such as the stock being in a bullish range and showing improvement in its technical trend since September 9, 2024, resulting in a 4.6% return. Additionally, the company has attractive valuations with a ROCE of 7.6 and a 1.2 Enterprise value to Capital Employed ratio.
However, there are some concerns regarding the company's ability to service its debt, as it has a high Debt to EBITDA ratio of 4.45 times. This could potentially impact its profitability, as seen in the low Return on Equity of 9.33%. Furthermore, the company has shown poor long-term growth with a negative annual growth rate of -3.85% in operating profit over the last 5 years.

In the most recent quarter, the company declared negative results with a significant decrease in profits and a rise in interest expenses. This has resulted in a consistent underperformance against the benchmark over the last 3 years, with the stock generating only -0.06% returns in the last year and underperforming the BSE 500 index in each of the last 3 annual periods.

Overall, while the recent technical factors may suggest a 'Hold' rating, investors should carefully consider the company's financial performance and potential risks before making any investment decisions.