BNR Udyog Receives 'Hold' Rating from MarketsMOJO Based on Strong Financial Performance and Bullish Technical Trend

Apr 26 2024 06:14 PM IST
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BNR Udyog, a microcap company in the BPO/ITeS industry, has received a 'Hold' rating from MarketsMojo on April 26, 2024. This is due to the company's strong financial results in the past 5 quarters, with a high ROCE and PAT. However, its long-term fundamentals and promoter confidence have weakened.
BNR Udyog, a microcap company in the BPO/ITeS industry, has recently received a 'Hold' rating from MarketsMOJO on April 26, 2024. This upgrade is based on the company's positive financial results for the past 5 consecutive quarters, with a high ROCE of 56.53% and a higher PAT of Rs 4.82 Cr in the last 9 months. Additionally, the company's DEBTORS TURNOVER RATIO is at its highest at 17.13 times.

Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on April 26, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

BNR Udyog has consistently generated returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods. In the last 1 year, the stock has generated a return of 85.21%.

However, the company's long-term fundamental strength is weak with an average ROE of 8.96% and poor growth in operating profit over the last 5 years. The company's ability to service its debt is also weak with a poor EBIT to Interest ratio of 0.30.

The stock is currently trading at an expensive valuation with a price to book value of 2.1. However, it is at a fair value compared to its average historical valuations. The PEG ratio of the company is 0, indicating that its profits have risen by 291.1% in the past year while the stock has generated a return of 85.21%.

In addition, there has been a decrease in promoter confidence as they have reduced their stake in the company by -1.03% over the previous quarter. Currently, promoters hold 71.09% of the company, which may signify reduced confidence in the future of the business.

Overall, BNR Udyog's recent 'Hold' rating from MarketsMOJO is based on its positive financial performance in the past few quarters and a bullish technical trend. However, the company's weak long-term fundamental strength and decreasing promoter confidence should also be considered by investors.
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