Concord Drugs Receives 'Hold' Rating from MarketsMOJO

Concord Drugs, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on December 5, 2023. The stock is currently in a Mildly Bullish range and has shown multiple bullish indicators such as MACD, Bollinger Band, and KST.
One of the main reasons for the 'Hold' rating is the stock's attractive valuation with a ROCE of 7.6 and an Enterprise value to Capital Employed ratio of 1. This indicates that the stock is trading at a discount compared to its historical valuations. Additionally, the company's profits have risen by 72% in the past year, while the stock has generated a return of 11.11%. The PEG ratio of the company is also at a low of 0.3, further supporting its attractive valuation.

However, the company's long-term fundamental strength is weak with a -4.38% CAGR growth in net sales over the last 5 years. Its ability to service its debt is also a concern with a poor EBIT to Interest ratio of 1.55. The company's profitability per unit of shareholders' funds is also low with a Return on Equity of 2.66%.

In the latest quarter, the company's net sales were at its lowest at Rs 7.53 crore, indicating flat results. While the stock may have some bullish indicators, it is important to consider the company's weak long-term fundamentals before making any investment decisions.