BNR Udyog Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Performance

BNR Udyog, a microcap company in the BPO/ITeS industry, has recently received a 'Hold' rating from MarketsMOJO on March 22, 2024. This upgrade is based on the company's positive financial performance in the last 5 consecutive quarters.
According to the latest financial results, BNR Udyog has shown a strong Return on Capital Employed (ROCE) of 56.53%, indicating efficient use of capital. The Profit After Tax (PAT) for the last 9 months has also increased to Rs 4.82 crore, showcasing the company's profitability. Additionally, the Debtors Turnover Ratio has reached a high of 17.13 times, indicating good management of receivables.

Technically, the stock is in a mildly bullish range and both the MACD and KST technical factors are also bullish. With an ROE of 47, the stock is attractively valued with a price to book value of 1.6. It is also trading at a fair value compared to its historical valuations.

Over the past year, BNR Udyog has generated a return of 26.66%, while its profits have increased by 291.1%. This has resulted in a PEG ratio of 0, indicating that the stock is undervalued. The majority shareholders of the company are the promoters, which can be seen as a positive sign for investors.

However, the company does have some weak long-term fundamental strengths. Its average ROE is 8.96%, which is lower than the industry average. The operating profit has also shown a slow growth rate of 18.23% over the last 5 years. Additionally, the company's ability to service its debt is weak with a poor EBIT to Interest ratio of 0.30.

In the last 1 year, BNR Udyog has underperformed the market, generating a return of 26.66% compared to the market's return of 37.47%. This could be a concern for investors, but the recent positive financial results and technical indicators suggest that the stock has potential for growth in the future.