Bangalore Fort Farms Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Short Term

Bangalore Fort Farms, a microcap company in the miscellaneous industry, has recently received a 'Hold' rating from MarketsMOJO on July 8, 2024. This upgrade comes as the company has shown positive results for the last three consecutive quarters, with higher net sales of Rs 27.37 crore and a higher profit after tax of Rs 0.34 crore in the last nine months.

Technically, the stock is in a bullish range and has shown improvement from being mildly bullish on July 8, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV have contributed to this bullish trend.

With a ROCE of 8.6, the company has a fair valuation and a 2.6 enterprise value to capital employed. The stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 225.87% in the past year, the company's profits have only risen by 36%, resulting in a PEG ratio of 0.

The majority of the company's shareholders are non-institutional, and the stock has outperformed the market (BSE 500) with a return of 225.87% compared to the market's 37.98% return in the last year.

However, the company's long-term fundamental strength is weak, with a -6.36% CAGR growth in operating profits over the last five years. Additionally, the company's ability to service its debt is poor, with a low EBIT to interest ratio of 0.31. The return on equity (avg) of 4.08% also signifies low profitability per unit of shareholders' funds.

Overall, while Bangalore Fort Farms has shown positive results in the short term, its long-term fundamental strength and profitability may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.