Jubilant Industries Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results and Bullish Trend

Jubilant Industries, a smallcap company in the pesticides and agrochemicals industry, has recently received a 'Hold' rating from MarketsMOJO on October 14, 2024. This upgrade is based on the company's positive results in June 2024, with the operating profit to interest ratio at a high of 10.31 times and the debt-equity ratio at a low of 0.69 times. Additionally, the company's net sales for the quarter were the highest at Rs 358.14 crore.
Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on October 14, 2024. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are also indicating a bullish trend for the stock.

In terms of performance, Jubilant Industries has outperformed the BSE 500 index in the long term as well as the near term. In the last 1 year, the stock has generated a return of 188.74%, while in the last 3 years, 1 year, and 3 months, it has outperformed the index.

However, the company has a high debt-to-equity ratio and weak long-term fundamental strength. The average debt-to-equity ratio is at 0 times, and the return on capital employed is at 9.75%, indicating low profitability per unit of total capital. The stock also has an expensive valuation with an enterprise value to capital employed ratio of 7.2.

Despite its size, domestic mutual funds hold only 0% of the company, which could signify their discomfort with the stock's price or business. As domestic mutual funds have the capability to conduct in-depth research on companies, their small stake could be a cause for concern.

In conclusion, while Jubilant Industries has shown positive results and a bullish trend, its high debt and weak fundamental strength may be a cause for caution. Investors may want to hold onto the stock for now and keep an eye on its performance in the future.