East West Holdings Receives 'Hold' Rating from MarketsMOJO After Strong Quarter Results.

East West Holdings, a microcap company in the miscellaneous industry, has recently received a 'Hold' rating from MarketsMOJO on June 18, 2024. This upgrade comes after the company reported positive results in March 2024, following flat results in December 2023.
The company's return on capital employed (ROCE) for the half-year was at its highest at 15.66%, while its PBDIT (profit before depreciation, interest, and taxes) for the quarter was also at its highest at Rs 3.56 crore. Additionally, the company's PAT (profit after tax) for the quarter was at its highest at Rs 6.04 crore.

Technically, the stock is currently in a mildly bullish range, with its technical trend improving from mildly bearish on June 18, 2024. The stock's Bollinger Band and KST (Know Sure Thing) technical factors are also showing a bullish trend.

With an ROCE of 9.1, the stock is considered to have an attractive valuation with a 1.2 enterprise value to capital employed. Furthermore, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 36.07%, while its profits have risen by 604.8%. The PEG (price/earnings to growth) ratio of the company is 0, indicating a potentially undervalued stock.

However, the company's long-term fundamental strength is weak, with an average ROCE of 6.85%. It also has a low ability to service debt, with a high debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio of 6.04 times.

Institutional investors have also shown a decrease in their stake in the company by -3.63% over the previous quarter, collectively holding only 0.06% of the company. This could be a cause for concern as institutional investors typically have better resources and capabilities to analyze a company's fundamentals compared to retail investors.

Overall, East West Holdings has shown positive results in the recent quarter, leading to a 'Hold' rating from MarketsMOJO. However, the company's long-term fundamentals and institutional investor participation should be closely monitored by investors.