Aster DM Healthcare Receives 'Hold' Rating Amid Bullish Trend and Attractive Valuations

Aster DM Healthcare, a largecap company in the hospital and healthcare services industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved technically from being mildly bullish to bullish on November 19, 2024.
The stock has multiple bullish factors such as MACD, Bollinger Band, KST, and OBV. Additionally, with a ROCE of 18.3, the company has a very attractive valuation and a low enterprise value to capital employed ratio of 5.8. This indicates that the stock is currently trading at a discount compared to its historical valuations.

Over the past year, the stock has generated a return of 27.94%, while its profits have increased by a staggering 779.7%. The PEG ratio of the company is also at a low of 0, further supporting its attractive valuation. Moreover, at its current price, the stock offers a high dividend yield of 28.1%.

Aster DM Healthcare has consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, the company's long-term fundamental strength is weak, with an average ROCE of 8.25%. It also has a high debt to EBITDA ratio of 3.66 times, indicating a low ability to service debt.

In the latest financial results for September 2024, the company's net sales have decreased by 49.62% and its operating cash flow is at its lowest at Rs 157.81 crore. The ROCE for the same period is also at its lowest at -79.13%.

It is worth noting that 98.87% of the promoter shares of Aster DM Healthcare are pledged. This can put additional downward pressure on the stock prices in falling markets. Overall, while the stock has shown a bullish trend and has attractive valuations, investors should also consider the company's weak long-term fundamentals and high promoter pledged shares before making any investment decisions.