Ducon Infratechnologies Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in March 2024

Ducon Infratechnologies, a microcap company in the trading industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's positive results in March 2024, with its ROCE (HY) reaching a high of 9.28% and PBDIT (Q) at Rs 7.48 crore. Additionally, the company's operating profit to net sales (Q) is also at its highest at 6.98%.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on 26 July 2024. The Bollinger Band, a key technical factor, has been bullish since the same date.

With an ROCE of 9.8, Ducon Infratechnologies is considered to have an attractive valuation with a 1.5 enterprise value to capital employed. The stock is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 17.32%, while its profits have increased by 86.1%. The PEG ratio of the company is 0.3.

The majority shareholders of Ducon Infratechnologies are the promoters, indicating their confidence in the company's performance.

However, the company has weak long-term fundamental strength, with an average ROCE of 7.26%. Its net sales have only grown at an annual rate of 7.00% and operating profit at 9.89% over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 4.75 times, indicating a low ability to service debt.

In the last year, Ducon Infratechnologies has underperformed the market, with a return of 17.32% compared to the market's (BSE 500) return of 36.61%. This may be a cause for concern for potential investors.