Zenotech Laboratories Receives 'Hold' Rating from MarketsMOJO, Shows Strong Management Efficiency and Debt Servicing Ability

Zenotech Laboratories, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's high management efficiency, with a ROE of 15.59%. Additionally, Zenotech has a strong ability to service debt, with a low Debt to EBITDA ratio of 1.29 times.
Technically, the stock is currently in a Mildly Bullish range, with the technical trend improving from Sideways on 13-May-24 and generating 1.58% returns since then. The MACD and KST technical factors are also Bullish, indicating a positive outlook for the stock.

The majority shareholders of Zenotech Laboratories are its promoters, which can be seen as a positive sign for investors. However, the company did report negative results in March 2024, with a -76.6% decrease in PAT(Q) at Rs 0.66 cr and the lowest NET SALES(Q) and PBDIT(Q) at Rs 9.11 cr and Rs 2.78 cr respectively.

With a ROE of 9.2, Zenotech has a Very Expensive valuation with a 4.2 Price to Book Value. However, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, while the stock has generated a return of 15.64%, its profits have fallen by -28.5%.

In the last 1 year, Zenotech Laboratories has underperformed the market, with a return of 15.64% compared to the market (BSE 500) returns of 32.70%. Investors should carefully consider these factors before making any investment decisions regarding Zenotech Laboratories.