Hardcastle & Waud Mfg Co Receives 'Hold' Rating After Positive Results and Bullish Trend

Hardcastle & Waud Mfg Co, a microcap company in the paints industry, has recently received a 'Hold' rating from MarketsMOJO on April 2, 2024. This upgrade comes after the company reported positive results in December 2023, with a high debtors turnover ratio of 117.50 times and a PBDIT of Rs 1.09 crore. The company's PBT less OI also saw a significant increase at Rs 0.93 crore.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on April 2, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST.

The majority shareholders of Hardcastle & Waud Mfg Co are the promoters, indicating their confidence in the company's performance. The stock has consistently outperformed BSE 500 in the last 3 annual periods and has generated a return of 93.92% in the last year.

However, the company's long-term fundamental strength is weak with a -1.04% CAGR growth in operating profits over the last 5 years. Its ability to service debt is also poor with a low EBIT to Interest ratio of 0.85. Additionally, the company's return on equity is only 1.75%, indicating low profitability per unit of shareholders' funds.

With a ROE of 4.9, the stock is currently trading at a very expensive valuation with a price to book value of 1. This is in line with its historical valuations. While the stock has seen a significant increase in profits in the past year, its PEG ratio is 0.3, indicating a fair valuation.

In conclusion, while Hardcastle & Waud Mfg Co has shown positive results and a bullish trend, its long-term fundamental strength and valuation may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.