Beryl Drugs Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend and Attractive Valuation

Beryl Drugs, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on October 28, 2024. This upgrade comes as the stock has shown a bullish trend and improved technically from mildly bullish to bullish on the given date. Multiple factors such as MACD, Bollinger Band, KST, and OBV have contributed to this positive trend.
One of the main reasons for the 'Hold' rating is the stock's attractive valuation with a ROCE of 13.8 and an enterprise value to capital employed ratio of 1.7. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 62.75% in the past year, its profits have declined by -43.9%.

The majority of the shareholders in Beryl Drugs are non-institutional investors, indicating a strong market performance in the long term as well as the near term. In fact, the stock has outperformed BSE 500 in the last 3 years, 1 year, and 3 months, further solidifying its market beating performance.

However, the company does have some weak fundamental strengths in the long term. Its average ROCE is only 5.27%, and its net sales and operating profit have grown at a slow annual rate of 14.04% and 6.34%, respectively, over the last 5 years. Additionally, Beryl Drugs has a high debt to EBITDA ratio of 3.04 times, indicating a low ability to service debt.

In the latest quarter, the company's results have been flat, with net sales of Rs 17.16 crore, showing a decline of -23.60%. Overall, while Beryl Drugs has shown a positive trend in the stock market, its long term fundamentals may need improvement for sustained growth.