Ind-Swift Laboratories Receives 'Hold' Rating Based on Technical Trend and Discounted Valuations

Ind-Swift Laboratories, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the stock's technical trend, which has improved from Mildly Bullish to Bullish on June 7, 2024. The company's stock is currently trading at a discount compared to its average historical valuations, making it a very attractive investment with a price to book value of 0.7.
Despite a return of 61.27% in the last year, the company's profits have fallen by -19.5%. However, this performance still beats the market (BSE 500) returns of 35.28%. Ind-Swift Laboratories has a weak long-term fundamental strength, with operating losses and poor growth in net sales over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 5.98 times, indicating a low ability to service debt.

In the latest quarter, the company's results were flat with a PBT LESS OI(Q) of Rs -38.50 crore, a decrease of -218.21% from the previous quarter. The PBDIT(Q) was also at its lowest at Rs -37.31 crore, and the operating profit to net sales (Q) was at its lowest at -9.49%. Furthermore, 48.57% of the promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets.

Overall, while Ind-Swift Laboratories has shown a strong market-beating performance in the past year, its weak long-term fundamentals and high promoter pledged shares make it a 'Hold' for now. Investors should keep an eye on the company's future performance and monitor any changes in its fundamental strength before making any investment decisions.