Beardsell Receives 'Hold' Rating, Shows Strong Performance

Beardsell, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on October 9, 2023. This upgrade comes as the company has consistently shown positive results for the past 11 quarters, with a growth of 118.80% in its PAT (HY) and the highest operating cash flow of Rs 15.29 crore (Y). Additionally, its ROCE (HY) has also reached its highest at 18.23%.
Technically, the stock is currently in a bullish range and has shown a significant improvement since October 4, 2023, generating a return of 30.87%. Multiple factors such as MACD, Bollinger Band, KST, and OBV have contributed to this bullish trend.

The majority shareholders of Beardsell are its promoters, indicating their confidence in the company's performance. In the long term, the stock has outperformed BSE 500 and has generated a return of 109.68% in the last year.

However, the company's long-term fundamental strength is weak, with an average ROCE of 8.27% and a poor growth rate of 4.94% in net sales over the last 5 years. Its ability to service its debt is also a concern, with a low EBIT to Interest (avg) ratio of 1.46.

Beardsell's current valuation is 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 historical valuations. In the past year, while the stock has generated a return of 109.68%, its profits have only increased by 143.3%, resulting in a low PEG ratio of 0.1.

In conclusion, 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 the stock and monitor its performance closely.