Beardsell Receives 'Hold' Rating, Shows Strong Performance

Beardsell, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared positive results for the last 11 consecutive quarters, with a significant growth in PAT (HY) at Rs 5.47 crore, which has increased by 118.80%. Additionally, the company's operating cash flow (Y) has also reached its highest at Rs 15.29 crore, while the ROCE (HY) stands at an impressive 18.23%.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on 27-Dec-23. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish outlook for the stock.

The majority shareholders of Beardsell are its promoters, and the company has shown a market-beating performance in both the long term and near term. In the last year, the stock has generated a return of 103.90%, outperforming the BSE 500 index. This trend has continued in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with an average ROCE of 8.27%. The net sales have also shown poor growth, increasing at an annual rate of only 4.94% over the last 5 years. Additionally, the company's ability to service its debt is weak, with a poor EBIT to Interest (avg) ratio of 1.46.

Beardsell's current valuation is considered expensive, with an ROCE of 15.1 and an enterprise value to capital employed ratio of 2.2. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 103.90%, its profits have risen by 143.3%, resulting in a PEG ratio of 0.1.

Overall, while Beardsell has shown strong performance in the short term, its long-term fundamentals and valuation may be a cause for concern. Investors are advised to hold onto their positions and monitor the company's performance closely.