Crane Infrastructure Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend in Short Term

Crane Infrastructure, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on January 23, 2024. This upgrade comes after the company reported positive results in September 2023, with its operating cash flow at a high of Rs 2.22 crore and a higher profit after tax of Rs 0.98 crore.
The stock is currently in a bullish range and has shown a significant improvement in its technical trend since January 20, 2024, generating a return of 9.98%. This can be attributed to multiple bullish factors such as MACD, Bollinger Band, and KST.

The majority shareholders of Crane Infrastructure are non-institutional investors, and the stock has consistently outperformed BSE 500 in the last three annual periods, with a return of 69.04% in the last year.

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

Crane Infrastructure's valuation is also a cause for concern, with a very expensive ROE of 4 and a price to book value of 0.6. The stock is currently trading at a premium compared to its historical valuations. While the stock has generated a return of 69.04% in the last year, its profits have only risen by 64%, resulting in a PEG ratio of 0.1.

In conclusion, while Crane Infrastructure has shown positive results and a bullish trend in the short term, its long-term fundamental strength and valuation raise some concerns. Investors are advised to hold onto their positions and monitor the company's performance closely.