Everest Organics Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Technical Indicators Point to Bullish Trend

Everest Organics, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical indicators, such as MACD, Bollinger Band, and KST, which all point towards a bullish trend for the stock. Additionally, the stock is currently trading at a discount compared to its historical valuations, making it an attractive option for investors.
One of the key factors contributing to the 'Hold' rating is the company's attractive valuation, with a ROCE of 5 and an Enterprise value to Capital Employed ratio of 1.7. This indicates that the company is generating good returns on its capital and is trading at a lower price compared to its peers.

Furthermore, Everest Organics has shown strong growth in profits over the past year, with a return of 42.03%. However, its profits have only risen by 32%, resulting in a PEG ratio of 0.6. This suggests that the stock may be slightly overvalued, but still has potential for growth.

It is worth noting that the majority of the company's shares are held by promoters, which can be seen as a positive sign for investors. However, there are some concerns regarding the company's long-term fundamental strength, with a -19.09% CAGR growth in Operating Profits over the last 5 years. Additionally, the company has a high Debt to EBITDA ratio of 9.09 times, indicating a low ability to service debt.

In terms of recent financial results, Everest Organics has shown flat results in March 2024. However, there has been a 37.05% growth in interest expenses and the Debt-Equity ratio for the half-year is at its highest at 1.22 times. The PBT LESS OI for the quarter is also at its lowest at Rs -0.14 cr.

Overall, while Everest Organics may have some weaknesses in its long-term fundamentals, the current technical indicators and attractive valuation make it a 'Hold' for investors. It is important to keep an eye on the company's financial performance and debt management in the future.