Gujarat Natural Resources receives 'Hold' rating from MarketsMOJO, shows significant sales growth

Gujarat Natural Resources, a microcap company in the oil exploration and refineries industry, has recently received a 'Hold' rating from MarketsMOJO on January 30, 2024. This upgrade comes as the company's net sales have shown a significant growth of 115.76% at Rs 13.42 crore in the last half year.
The stock is currently in a bullish range and has shown a technical trend improvement since December 13, 2023, with a return of 75.81%. This is supported by various factors such as MACD, Bollinger Band, KST, and OBV.

Majority shareholders of Gujarat Natural Resources are non-institutional investors, and the company has shown a market-beating performance in both the long term and near term. In the last year, the stock has generated a return of 92.49%, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with an average Return on Capital Employed (ROCE) of 0.21%. The growth rate of net sales and operating profit over the last 5 years has been 23.27% and 6.51%, respectively, indicating poor long-term growth.

Moreover, Gujarat Natural Resources has a weak ability to service its debt, with a poor EBIT to Interest (avg) ratio of -1.73. The company also has a very expensive valuation with a ROCE of -0.9 and an Enterprise value to Capital Employed ratio of 1.8.

Despite these weaknesses, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 92.49%, its profits have only risen by 94.9%. Overall, MarketsMOJO's 'Hold' rating suggests a neutral stance on Gujarat Natural Resources, considering its current performance and future potential.