Hardcastle & Waud Mfg Co Receives 'Hold' Rating After Positive Quarterly Results

Hardcastle & Waud Mfg Co, a microcap company in the paints industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared positive results for the last three consecutive quarters, with a highest ROCE (HY) of 6.79% and a higher PAT (9M) of Rs 2.01 Cr.
The stock is currently in a bullish range, with technical indicators such as MACD, Bollinger Band, and KST showing positive trends. The majority shareholders of the company are the promoters, indicating their confidence in the company's performance.

Hardcastle & Waud Mfg Co has consistently outperformed the BSE 500 index in the last three annual periods, with a return of 96.08% in the last year alone. However, the company's long-term fundamental strength is weak, with a -1.04% CAGR growth in operating profits over the last five years. Additionally, the company's ability to service its debt is poor, with a low EBIT to Interest (avg) ratio of 0.85.

The company's profitability per unit of shareholders' funds is also low, with a Return on Equity (avg) of 1.75%. This is reflected in the company's expensive valuation, with a price to book value of 1.2 and a ROE of 5.8. However, the stock is currently trading at a fair value compared to its historical valuations.

Despite the stock's impressive return of 96.08% in the last year, its profits have only risen by 135.5%, resulting in a low PEG ratio of 0.2. Overall, while Hardcastle & Waud Mfg Co has shown positive performance in the short term, its long-term fundamentals and valuation may warrant a 'Hold' rating for now. Investors should keep an eye on the company's future performance to make informed decisions.