Dhanlaxmi Cotex Receives 'Hold' Rating from MarketsMOJO Based on Technical Trend and Attractive Valuation

Dhanlaxmi Cotex, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on July 24, 2024. This upgrade is based on the stock's technical trend, which has improved from Mildly Bullish to Bullish. The company's Bollinger Band and OBV technical factors are also showing a Bullish trend.
One of the reasons for this upgrade is the stock's attractive valuation, with a ROE of 3.8 and a price to book value of 0.5. Additionally, the stock is currently trading at a fair value compared to its average historical valuations. Despite generating a negative return of -5.40% in the past year, the company's profits have increased by 257%, resulting in a PEG ratio of 0.

The majority shareholders of Dhanlaxmi Cotex are its promoters. However, the company's long term fundamental strength is weak due to operating losses and poor growth. In fact, the operating profit has declined at an annual rate of -3.70%. The company's financial results for March 2024 also show a decline in profits, with a PAT(Q) of -0.40 cr, a decrease of -160.4%, and a low cash and cash equivalents of Rs 0.68 cr.

In the past year, Dhanlaxmi Cotex has underperformed the market, with negative returns of -5.40%, while the market (BSE 500) has generated returns of 35.30%. This indicates that the stock has not been able to keep up with the overall market performance. With this in mind, MarketsMOJO has upgraded the stock to a 'Hold' rating, suggesting a neutral stance for investors.