Kanoria Energy & Infrastructure Receives 'Hold' Rating

Kanoria Energy & Infrastructure, a microcap company in the cement industry, has recently received a 'Hold' rating from MarketsMOJO on January 3rd, 2024. This upgrade is based on technical analysis, with the stock currently in a bullish range and showing improvement in its technical trend.
The company's financials also show positive signs, with a return on capital employed of 11.4 and a discounted trading price compared to its historical valuations. In the past year, the stock has generated a return of 30.88%, while its profits have increased by 31.8%. This is reflected in the company's attractive PEG ratio of 0.8.

However, there are some concerns regarding the company's long-term fundamental strength. Its operating profits have only grown at a CAGR of 18.14% over the last 5 years, indicating a weak performance. Additionally, the company has a high debt to EBITDA ratio of 4.26 times, which may affect its ability to service debt.

In the latest quarter, the company's results were flat, with the lowest operating cash flow and cash and cash equivalents. However, its interest expenses have grown by 37.83% in the last 9 months.

It is worth noting that the majority shareholders of Kanoria Energy & Infrastructure are its promoters. This information is important for investors to consider when making decisions about the company's stock.

Overall, while the technical analysis and financials show positive signs for Kanoria Energy & Infrastructure, the company's weak long-term fundamental strength and high debt levels should also be taken into consideration. Investors are advised to do their own research and consult with a financial advisor before making any investment decisions.