Ajanta Soya Receives 'Hold' Rating from MarketsMOJO Based on Strong Financials

Ajanta Soya, a microcap company in the refined oil and vanaspati industry, has recently received a 'Hold' rating from MarketsMOJO on August 16, 2024. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times on average.
The company has also shown positive results in the last two consecutive quarters, with a growth in net profit of 62.45% in June 2024. Its PBDIT(Q) is at its highest at Rs 5.20 crore, while its OPERATING PROFIT TO NET SALES(Q) and PBT LESS OI(Q) are also at their highest at 1.91% and Rs 3.60 crore respectively.

However, the company's long-term growth has been poor, with an annual rate of -230.27% for the last 5 years. The stock is currently in a Mildly Bearish range, with multiple factors such as RSI, MACD, and KST indicating a bearish trend.

Despite this, Ajanta Soya has an attractive valuation with a Price to Book Value of 2 and a ROE of 8.2. However, it is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 23.23%, while its profits have risen by 196.9%. The PEG ratio of the company is 0.1.

Overall, Ajanta Soya has underperformed the market in the last 1 year, with a return of 23.23% compared to the market's (BSE 500) return of 36.18%. Investors may want to hold onto their positions in the company for now, as it shows potential for growth in the future. However, it is important to keep an eye on the company's long-term growth and market trends.