Kabsons Industries Receives 'Hold' Rating After Strong Performance in Last 7 Quarters

Kabsons Industries, a microcap company in the industrial gases and fuels industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company's positive performance in the last 7 consecutive quarters, with a growth of 60.75% in net sales and a higher PAT of Rs 1.89 crore in the last 9 months. The PBDIT for the last quarter was also at its highest at Rs 0.98 crore.
Technically, the stock is currently in a bullish range, with multiple factors such as MACD, KST, and OBV indicating a positive trend. The stock has generated a return of 3.49% since the technical trend turned bullish on 21-May-24.

The majority shareholders of Kabsons Industries are its promoters, which is a positive sign for investors. The stock has also shown market-beating performance in the long term, with a return of 96.16% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with a CAGR growth of only 0.59% in operating profits over the last 5 years. Additionally, its ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of 0.

The stock is currently trading at a premium compared to its average historical valuations, with a price to book value of 3.5. Its ROE of 19.5 also indicates a very expensive valuation. While the stock has generated a high return of 96.16% in the last year, its profits have only risen by 120%, resulting in a low PEG ratio of 0.1.

Overall, Kabsons Industries shows potential for growth in the short term, but its weak long-term fundamentals and expensive valuation make it a 'Hold' for now. Investors should keep an eye on the company's performance in the coming quarters to make an informed decision.