Aarey Drugs & Pharmaceuticals Receives 'Hold' Rating After Positive Results and Attractive Valuation.

Aarey Drugs & Pharmaceuticals, a microcap company in the trading industry, has recently received a 'Hold' rating from MarketsMOJO on March 15, 2024. This upgrade comes after the company declared positive results in December 2023, breaking a streak of 7 consecutive negative quarters.
The company's net sales for the quarter have shown a growth of 22.43%, reaching Rs 76.48 crore. Its PBDIT (Profit Before Depreciation, Interest, and Taxes) has also reached its highest at Rs 2.71 crore, with the operating profit to net sales ratio at its peak of 3.54%.

Technically, the stock is currently in a mildly bullish range, with the trend improving from sideways on March 15, 2024. The MACD and KST technical factors also indicate a bullish trend.

Attractive valuation is another factor contributing to the 'Hold' rating. With a ROCE (Return on Capital Employed) of 2.3, the stock is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 34.95%, while its profits have increased by 59.3%. The PEG ratio of the company stands at 0.4.

The majority shareholders of Aarey Drugs & Pharmaceuticals are the promoters, indicating their confidence in the company's future prospects. However, the company has a weak long-term fundamental strength, with a -38.02% CAGR growth in operating profits over the last 5 years. Additionally, the company's return on equity (average) is at a low 6.74%, indicating low profitability per unit of shareholders' funds.

Overall, Aarey Drugs & Pharmaceuticals shows potential for growth with its recent positive results and attractive valuation. However, investors should also consider the company's weak long-term fundamentals before making any investment decisions.