Bhatia Communications & Retail (India) Receives 'Hold' Rating from MarketsMOJO Based on Strong Financial Results

Bhatia Communications & Retail (India) is a microcap company in the trading industry. Recently, MarketsMOJO has upgraded its stock call to 'Hold' on 16th August 2024. This decision is based on the company's positive financial results for the past 7 quarters, with the highest PBDIT(Q) at Rs 5.26 crore and PBT LESS OI(Q) at Rs 4.37 crore. Additionally, the company has a high DEBTORS TURNOVER RATIO(HY) of 66.81 times.
However, the technical trend for the stock is currently sideways, indicating no clear price momentum. Although, it has improved from being mildly bearish on 16th August 2024 and has generated a return of 1.99% since then. With a ROE of 17.5, the stock is currently trading at an attractive valuation with a price to book value of 4.2, which is lower than its historical average.

On the downside, Bhatia Communications & Retail (India) has a high Debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt. The company also has a poor long-term growth rate, with an annual growth rate of only 17.10% in operating profit over the last 5 years. Additionally, the company has a low Return on Capital Employed (avg) of 0.45%, indicating low profitability per unit of total capital.

In the last 1 year, the stock has underperformed the market, generating a return of 24.45% compared to the market's (BSE 500) return of 36.18%. The majority shareholders of the company are the promoters, which may indicate a lack of interest from external investors. Overall, while Bhatia Communications & Retail (India) has shown positive financial results, it is important to consider its high debt and low profitability before making any investment decisions.