Indo Euro Indchem receives 'Hold' rating from MarketsMOJO after positive results and improved technical trend

Indo Euro Indchem, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on August 5th, 2024. This upgrade comes after the company reported positive results in March 2024, with a significant growth of 79.53% in net sales and a higher PAT of Rs 0.91 crore in the last 9 months.
Technically, the stock is currently in a mildly bullish range, with an improved trend from sideways on August 5th, 2024. The RSI and Bollinger Band technical factors also indicate a bullish trend. Additionally, with a ROE of 9.3 and a price to book value of 1.4, the stock is currently trading at an attractive valuation compared to its historical average.

However, the company's long-term fundamental strength is weak, with operating losses and poor growth in net sales and operating profit over the last 5 years. The company also has a weak ability to service its debt, with a poor EBIT to Interest ratio. Furthermore, the stock has underperformed the market in the last year, generating negative returns of -34.88% compared to the market's 32.89% returns.

It is worth noting that the majority shareholders of Indo Euro Indchem are promoters, indicating their confidence in the company's future prospects. However, it is important to consider the company's weak long-term fundamentals and underperformance in the market before making any investment decisions.