Coffee Day Enterprises receives 'Hold' rating from MarketsMOJO after positive results.

Coffee Day Enterprises, a smallcap company in the lifestyle industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last three consecutive quarters, with a higher PAT (HY) of Rs 78.84 crore and a lowest DEBT-EQUITY RATIO (HY) of 0.52 times. Additionally, the EPS (Q) has also seen a significant increase at Rs 3.28.
Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on 16-Apr-24. Multiple factors such as MACD, Bollinger Band, and KST have contributed to this bullish trend.

In terms of market performance, Coffee Day Enterprises has outperformed the BSE 500 in the last 3 years, 1 year, and 3 months, with a return of 112.65%. However, the company's long-term fundamental strength is weak, with a -202.74% CAGR growth in operating profits over the last 5 years. The company also has a high debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt. The return on equity (avg) is also low at 1.37%, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at a premium compared to its average historical valuations, with a ROCE of -8.3 and an enterprise value to capital employed ratio of 0.6. Despite the company's small size, domestic mutual funds hold only 0% of the company, which could suggest that they are not comfortable with the current price or the business.

Overall, while Coffee Day Enterprises has shown positive results in the short term, its long-term fundamental strength and valuation may be a cause for concern. Investors are advised to hold onto their stocks and monitor the company's performance closely.