Bajaj Hindusthan Sugar Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in First Half of 2024

Bajaj Hindusthan Sugar, a midcap company in the sugar industry, has recently received a 'Hold' rating from MarketsMOJO on September 10, 2024. This upgrade is based on the company's positive results in the first half of 2024, with a higher PAT (HY) of Rs 35.18 crore and a lowest DEBT-EQUITY RATIO (HY) of 0.86 times.
Technically, the stock is in a Mildly Bullish range and has multiple bullish factors such as MACD, Bollinger Band, and KST. With a ROCE of 0.3, the stock is attractively valued with a 1.1 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 43.80%, while its profits have increased by 58.8%.

Bajaj Hindusthan Sugar has shown market-beating performance in both the long term and near term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, the company has weak long-term fundamental strength with a -14.28% CAGR growth in Operating Profits over the last 5 years. It also has a low ability to service debt, with a high Debt to EBITDA ratio of 18.74 times. This has resulted in the company reporting losses and a negative ROE.

Investors should also be aware that 100% of the promoter shares are pledged. In a falling market, this can put additional downward pressure on the stock prices. Overall, while Bajaj Hindusthan Sugar has shown positive results in the first half of 2024 and has multiple bullish factors, it also has some weaknesses that investors should consider before making any investment decisions.