Conart Engineers Receives 'Hold' Rating from MarketsMOJO, Shows Strong Short-Term Growth

Conart Engineers, a microcap company in the capital goods industry, has recently received a 'Hold' rating from MarketsMOJO on November 7, 2024. This upgrade is based on the company's positive financial results for the past four consecutive quarters.
In the last nine months, Conart Engineers has shown significant growth with a 80.88% increase in PAT and a 14.77% increase in ROCE. The company's net sales have also seen a rise, reaching Rs 37.46 crore. Additionally, the stock is currently in a bullish range and has shown improvement in its technical trend.

With a ROE of 11.1, Conart Engineers is fairly valued with a price to book value of 2.1. However, the stock is currently trading at a premium compared to its historical valuations. In the past year, the stock has generated a return of 278.07%, while its profits have risen by 91.1%. The PEG ratio of the company is also at a low 0.2.

The majority of the company's shareholders are non-institutional investors. Conart Engineers has consistently delivered strong returns over the last three years, outperforming the BSE 500 index.

However, the company's long-term fundamental strength is weak with an average ROE of 6.45%. Its growth in net sales and operating profit over the last five years has been at a slow rate of 10.22% and 12.01%, respectively. Additionally, Conart Engineers' ability to service its debt is poor with a low EBIT to Interest ratio of 1.38.

Overall, while Conart Engineers has shown positive growth in the short term, its long-term fundamentals and debt-servicing ability may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.