Hardwyn India Receives 'Hold' Rating from MarketsMOJO, Shows Potential for Growth Despite Debt Concerns

Hardwyn India, a smallcap company in the aluminium and aluminium products industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, with net sales growing at an annual rate of 26.30% and operating profit at 69.11%.
Technically, the stock is currently in a mildly bullish range, with the technical trend improving from mildly bearish on 18-Oct-24. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are also bullish for the stock.

However, there are some concerns regarding the company's ability to service debt, as it has a high debt to EBITDA ratio of 3.02 times. This could potentially impact the company's profitability, as it has a low return on equity (avg) of 7.76%.

In the latest quarter, the company's profits have fallen by -47.6%, with a PAT(Q) of Rs 1.34 crore and EPS(Q) of Rs 0.04, the lowest in recent times. Additionally, with a ROE of 2.7, the stock is currently trading at a very expensive valuation, with a price to book value of 3.7.

Despite these concerns, the stock is currently trading at a discount compared to its average historical valuations. However, it has underperformed the market (BSE 500) in the last year, generating negative returns of -0.79% while the market has seen a growth of 34.39%.

It is also worth noting that despite its smallcap size, domestic mutual funds hold only 0% of the company, which could indicate that they are not comfortable with the current price or the business.

Overall, while Hardwyn India has shown potential for growth, it is important to consider the company's debt and profitability concerns before making any investment decisions.