Ishita Drugs & Industries Receives 'Hold' Rating Amid Bullish Trend and Weak Fundamentals

Ishita Drugs & Industries, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and improved technical indicators.
The stock is currently trading at a fair value compared to its historical valuations and has a price to book value of 2.4, making it an attractive investment option. In the past year, the stock has generated a return of 18.51%, while its profits have increased by 20%. This has resulted in a low PEG ratio of 0.7, indicating a good value for investors.

However, the company's long-term fundamental strength is weak with an average return on equity (ROE) of 7.92%. Its growth has also been slow, with net sales and operating profit growing at an annual rate of 6.29% and 5.55%, respectively, over the last 5 years. Additionally, the company's ability to service its debt is poor, with a low EBIT to interest ratio of 0.66.

In terms of ownership, the majority shareholders of Ishita Drugs & Industries are non-institutional investors. This may indicate a lack of confidence from institutional investors in the company's future prospects.

The stock has also underperformed the market in the last year, with a return of 18.51% compared to the market's (BSE 500) return of 39.48%. This could be a cause for concern for potential investors.

Overall, while Ishita Drugs & Industries may have shown some positive indicators, its weak long-term fundamentals and underperformance in the market suggest a 'Hold' rating for now. Investors should carefully consider all factors before making any investment decisions.