Continental Petroleums receives 'Hold' rating from MarketsMOJO after positive financial results.

Continental Petroleums, a microcap company in the lubricants industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared positive results in June 2024, breaking a streak of four consecutive negative quarters.
The company's PBDIT(Q) has reached its highest at Rs 2.55 crore, while PBT LESS OI(Q) has also seen a significant increase at Rs 1.85 crore. Additionally, the PAT(9M) has shown a higher value of Rs 3.43 crore. These positive financial results have contributed to the stock's technical trend, which has improved from Sideways to Mildly Bullish on 20-Aug-24.

Furthermore, multiple technical indicators such as MACD, Bollinger Band, KST, and OBV are showing a bullish trend for the stock. With a ROCE of 19 and an attractive valuation of 1.8 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its historical average.

In the past year, the stock has outperformed the market (BSE 500) with a return of 68.73%, while its profits have also seen a growth of 17.9%. The PEG ratio of the company stands at 0.7, indicating a potential undervaluation.

However, it is worth noting that the majority of the company's shareholders are non-institutional investors. Additionally, the company has shown weak long-term fundamental strength with a CAGR growth of only 7.91% in net sales over the last 5 years.

Overall, while the recent financial results and technical indicators are positive, the long-term fundamental strength of Continental Petroleums may be a cause for concern. Investors are advised to hold on to their positions for now and monitor the company's performance closely.