Agarwal Industrial Corporation Receives 'Hold' Rating from MarketsMOJO: A Closer Look at the Factors Behind the Upgrade

Agarwal Industrial Corporation, a smallcap company in the petrochemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on several factors that indicate a positive outlook for the company. One of the key reasons for the 'Hold' rating is the company's strong ability to service its debt. With a low Debt to EBITDA ratio of 1.25 times, Agarwal Industrial Corporation is in a good position to manage its debt obligations. Additionally, the company has shown healthy long-term growth, with its Net Sales growing at an annual rate of 28.55% and Operating profit at 40.77%. From a technical standpoint, the stock is currently in a Mildly Bullish range and has shown improvement since 26-Nov-24. The MACD, a key technical factor, has been Bullish since 26 Nov 2024. Furthermore, the company has a Very Attractive valuation with a ROCE of 21.1 and an Enterprise value to Capital Employed ratio of 2.3. This indicates that the stock is trading at a discount compared to its historical valuations. However, there are some negative aspects to consider. In the recent quarter, the company has reported negative results, with a significant decrease in interest and net sales, as well as a fall in PBT LESS OI. Additionally, institutional investors have decreased their stake in the company, which may be a cause for concern for some investors. Despite these challenges, Agarwal Industrial Corporation has outperformed the market in the last 1 year, generating a return of 12.54%. However, this is lower than the market (BSE 500) returns of 27.33%. With a market cap of Rs 1,526 crore and annual sales of Rs 2,297.99 crore, the company is the biggest in its sector and holds a significant share of 31.66%. Overall, the 'Hold' rating from MarketsMOJO suggests that Agarwal Industrial Corporation has potential for growth, but investors should carefully consider all factors before making any investment decisions.