Kanishk Steel Industries Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend and 4.39% Return.

Kanishk Steel Industries, a microcap company in the iron and steel industry, has recently received a 'Hold' rating from MarketsMOJO on May 8, 2024. This upgrade comes as the stock has shown a bullish trend and has generated a return of 4.39% since May 7, 2024.
The technical trend for Kanishk Steel Industries has improved from mildly bullish to bullish, with factors such as MACD, Bollinger Band, and KST all indicating a positive outlook for the stock. Additionally, the company has an attractive valuation with a ROCE of -0.9 and a 1 Enterprise value to Capital Employed.

However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 37.70%, its profits have fallen by -74.2%. The majority shareholders of the company are promoters.

Kanishk Steel Industries also has weak long-term fundamental strength, with a -160.71% CAGR growth in operating profits over the last 5 years. The company's ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of 0.90. Additionally, the company has a low profitability per unit of total capital (equity and debt) with a Return on Capital Employed (avg) of 7.09%.

In the latest financial results for December 2023, Kanishk Steel Industries reported flat results with a PAT (HY) of Rs 4.69 crore, showing a decline of -55.84%, and a NET SALES (Q) of Rs 92.80 crore, showing a decline of -8.4%. The company's non-operating income accounted for 68.21% of its Profit Before Tax (PBT).

Overall, while Kanishk Steel Industries has shown a bullish trend in the short term, its long-term fundamentals and financial performance raise some concerns. Investors are advised to hold onto their positions and monitor the company's performance closely.