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

Kachchh Minerals, a microcap company in the mining and minerals industry, has recently received a 'Hold' rating from MarketsMOJO on March 11, 2024. This upgrade comes after the company reported positive results in December 2023, with its PBDIT(Q) reaching a high of Rs 0.33 crore, PBT LESS OI(Q) at Rs 0.31 crore, and PAT(Q) at Rs 0.31 crore.
The stock is currently in a bullish range and its technical trend has improved from mildly bullish on March 11, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, are contributing to the stock's bullish performance.

Kachchh Minerals has a majority of non-institutional shareholders, and its market performance has been beating the BSE 500 index in the long term as well as the near term. In the last year, the stock has generated a return of 72.89%, outperforming the BSE 500 index.

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 poor, with a low EBIT to Interest (avg) ratio of 0.27.

The stock also has a very expensive valuation, with a price to book value of 11.6 and a ROE of 38.2. However, it is currently trading at a discount compared to its average historical valuations. While the stock has generated a high return in the past year, its profits have only increased by 37%, resulting in a low PEG ratio of 0.2.

Overall, Kachchh Minerals is showing positive performance in the short term, but its long-term fundamentals and valuation may be a cause for concern. Investors may want to hold onto the stock for now and monitor its performance closely.