Haryana Leather Chemicals Receives 'Hold' Rating from MarketsMOJO After Positive Results in 2023

Haryana Leather Chemicals, a microcap company in the chemicals 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 its Return on Capital Employed (ROCE) reaching a high of 7.93% and its Profit Before Depreciation, Interest, and Tax (PBDIT) at Rs 1.08 crore.
The stock is currently in a bullish range and has shown improvement in its technical trend from mildly bullish to bullish on April 2, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST. The majority of the company's shareholders are non-institutional investors.

Haryana Leather Chemicals has consistently generated strong returns over the last three years, outperforming the BSE 500 index. However, its long-term fundamental strength is weak with an average Return on Equity (ROE) of 5.74%. The company has also shown poor growth in net sales and operating profit over the last five years.

Furthermore, the company's ability to service its debt is weak with a poor EBIT to Interest ratio of 1.06. With an ROE of 6.9, the stock is currently trading at an expensive valuation with a price to book value of 0.9. However, it is trading at a fair value compared to its historical valuations.

Despite generating a return of 94.51% in the last year, the company's profits have only risen by 55.1%, resulting in a low PEG ratio of 0.3. Overall, while Haryana Leather Chemicals has shown positive results in the short term, its long-term growth and fundamental strength may be a cause for concern for investors.