Crane Infrastructure Receives 'Hold' Rating from MarketsMOJO, Despite Positive Results and Bullish Trend

Crane Infrastructure, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on January 25, 2024. This upgrade comes after the company reported positive results in September 2023, with its operating cash flow reaching a high of Rs 2.22 crore and its profit after tax increasing to Rs 0.98 crore.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on January 25, 2024. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish outlook for the stock.

Majority shareholders of Crane Infrastructure are non-institutional investors, and the company has consistently outperformed BSE 500 in the last three annual periods, with a return of 113.99% in the past year.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 1.62%. Its net sales have grown at an annual rate of 28.55%, and operating profit at 1.92% over the last five years, indicating poor long-term growth. Additionally, the company's ability to service its debt is weak, with a low EBIT to interest ratio of 0.55.

Crane Infrastructure also has a high valuation, with a price to book value of 0.7 and a PEG ratio of 0.1. This indicates that the stock is trading at a premium compared to its historical valuations. While the stock has generated a return of 113.99% in the past year, its profits have only increased by 64%, indicating a potential overvaluation.

Overall, MarketsMOJO's 'Hold' rating for Crane Infrastructure suggests a neutral outlook for the stock. Investors should carefully consider the company's weak long-term fundamentals and high valuation before making any investment decisions.