Ajanta Soya receives 'Hold' rating from MarketsMOJO, shows stable financials and improved trend

Ajanta Soya, a microcap company in the refined oil and vanaspati industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown a low Debt to Equity ratio, indicating a stable financial position.
In the last quarter, Ajanta Soya recorded its highest PBDIT (Profit Before Depreciation, Interest, and Taxes) at Rs 0.63 crore, along with the highest operating profit to net sales ratio of 0.23%. The company also reported a PAT (Profit After Tax) of Rs 1.18 crore, the highest in the quarter.

Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Mildly Bearish on 7th February 2024. The MACD and Bollinger Band technical factors also suggest a Bullish trend for the stock.

However, Ajanta Soya has shown poor long-term growth, with an annual growth rate of -230.27% in operating profit over the last 5 years. The company also has a negative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), making it a risky investment.

In the past year, while the stock has generated a return of 10.25%, its profits have declined by -107.6%. This underperformance is also reflected in the stock's returns compared to the market (BSE 500), which has generated a return of 34.02% in the same period.

The majority of Ajanta Soya's shareholders are non-institutional, which may indicate a lack of confidence from larger investors. Overall, while the company's financials and technical factors show some positive signs, it is important to consider the risks associated with investing in a microcap company like Ajanta Soya.