Hardcastle & Waud Mfg Co Receives 'Hold' Rating from MarketsMOJO Based on Strong Financial Results

Hardcastle & Waud Mfg Co, a microcap company in the paints industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's positive financial results for the last four consecutive quarters. The company's profits after tax have grown by an impressive 152.24% and its return on capital employed is at its highest at 6.79%. In addition, its profit before depreciation, interest, and taxes for the last quarter was also at its highest at Rs 1.12 crore.
Technically, the stock is in a bullish range and has shown a 7.09% return since October 9, 2024. The technical trend has improved from mildly bullish and multiple factors such as MACD, Bollinger Band, and KST are also bullish for the stock.

The majority shareholders of Hardcastle & Waud Mfg Co are its promoters, indicating their confidence in the company's performance. The stock has consistently outperformed the BSE 500 index in the last three annual periods and has generated a return of 146.15% in the last year.

However, the company's long-term fundamental strength is weak with a 32.28% CAGR growth in operating profits over the last five years. Its ability to service its debt is also weak with a poor EBIT to interest ratio of 0.85. The return on equity is at a low 2.85%, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at a premium compared to its historical valuations, with a price to book value of 1.7. Its PEG ratio is also low at 0.2, indicating that its profits have not kept up with its stock price growth in the past year.

In conclusion, while Hardcastle & Waud Mfg Co has shown positive financial results and a bullish technical trend, its long-term fundamental strength and valuation may be a cause for concern. Investors may want to hold onto their current positions and monitor the company's performance closely before making any further investment decisions.