Bambino Agro Industries: A 'Hold' Rating Upgrade

Bambino Agro Industries ., a microcap FMCG company, has recently been upgraded to a 'Hold' rating by MarketsMOJO. The technical trend for the stock has improved from Mildly Bullish to Bullish, with a 8% return since November 2023. The company's ROCE of 11.4 and fair valuation with a 2.3 Enterprise value to Capital Employed make it an attractive option for investors.
However, there are some concerns to be noted. The stock is currently trading at a discount compared to its average historical valuations, and its profits have only risen by 11.5% in the past year, resulting in a PEG ratio of 2.7. Additionally, the company has a high Debt to EBITDA ratio of 3.59 times, indicating a low ability to service debt.

Furthermore, Bambino Agro Industries . has shown poor long-term growth with only a 9.26% annual growth in Net Sales and 9.87% in Operating profit over the last 5 years. In addition, the company's results for September 2023 were flat, indicating a lack of significant progress.

Despite these concerns, the stock has underperformed the market in the last year, with a return of only 1.91% compared to the market's 16.72%. With majority shareholders being the promoters, it is important for investors to carefully consider all factors before making a decision on this stock.