Kachchh Minerals Receives 'Hold' Rating from MarketsMOJO After Positive Q3 Results

Kachchh Minerals, a microcap company in the mining and minerals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in September 2023, with its PBDIT(Q), PBT LESS OI(Q), and PAT(Q) reaching their highest levels at Rs 0.25 cr, Rs 0.22 cr, and Rs 0.22 cr respectively.
Technically, the stock is currently in a bullish range and the trend has improved from mildly bullish to bullish on 20th January 2024. This is supported by multiple factors such as MACD, KST, and OBV.

However, the company's long-term fundamental strength is weak with a CAGR growth of only 8.59% 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 0.27.

The stock also has a very expensive valuation with a price to book value of 8.6 and a return on equity of 12.7. However, it is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated a return of 13.51%, its profits have fallen by -1%. This could be a cause for concern for investors.

Moreover, there has been a decrease in promoter confidence as they have reduced their stake in the company by -37.44% over the previous quarter and currently hold only 7.26% of the company. This could indicate a lack of confidence in the future of the business.

Overall, Kachchh Minerals has underperformed the market in the last 1 year with a return of 13.51%, much lower than the market (BSE 500) returns of 23.79%. Investors are advised to hold their positions in the stock and monitor its performance closely.