Black Rose Industries Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability and Positive Growth

Black Rose Industries, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on August 26, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.29 times. Additionally, Black Rose Industries has shown positive results for the last four consecutive quarters, with a growth of 77.82% in its PAT (HY) at Rs 10.42 crore.

Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Mildly Bearish on August 26, 2024. The Bollinger Band and KST technical factors also indicate a bullish trend for the stock.

However, the company has shown poor long-term growth, with an annual rate of -15.92% in its operating profit over the last five years. Furthermore, with an ROE of 14.6, the stock is currently trading at an expensive valuation with a 5 Price to Book Value. However, it is worth noting that 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 3.10%, its profits have risen by 185.2%. This gives the company a PEG ratio of 0.2, indicating a potential undervaluation. It is also worth mentioning that despite its small size, domestic mutual funds hold only 0.01% of the company. This could signify that they are either not comfortable with the current price or have not conducted in-depth research on the company.

In the last year, Black Rose Industries has underperformed the market, with a return of only 3.10%, compared to the market (BSE 500) returns of 39.36%. Investors should carefully consider these factors before making any investment decisions regarding Black Rose Industries.