Bhakti Gems & Jewellery Upgraded to 'Hold' by MarketsMOJO, But Concerns Remain

Bhakti Gems & Jewellery, a microcap company in the jewellery industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This upgrade is based on various technical factors, such as the stock being in a bullish range and improvements in its technical trend. Additionally, the company has a ROCE of 4.5 and is trading at a discount compared to its historical valuations, making it an attractive investment option.
However, there are some concerns regarding the company's long-term fundamental strength. Its average ROCE is only 3.52%, indicating a weak performance in generating returns on capital. Furthermore, Bhakti Gems & Jewellery has a high debt to EBITDA ratio of 9.56 times, which may affect its ability to service debt in the future.

In terms of financial performance, the company's net sales in the last quarter have fallen by -22.73%, while its profits have also decreased by -13% in the past year. This could be a cause for concern for potential investors.

It is worth noting that the majority of shareholders in Bhakti Gems & Jewellery are non-institutional investors. This may indicate a lack of confidence from larger, more experienced investors in the company's potential.

In conclusion, while Bhakti Gems & Jewellery may have some positive technical indicators and attractive valuations, its weak long-term fundamentals and recent decline in financial performance suggest a cautious approach. Investors may want to hold off on investing in this microcap company until there is more stability and improvement in its overall performance.