Kesar Enterprises: A Risky Yet Promising Investment

Kesar Enterprises, a microcap company in the sugar industry, has recently received a stock call upgrade from 'Strong Sell' to 'Sell' by MarketsMOJO. This change is due to the company's weak long-term fundamental strength, as reflected by its operating losses and high debt to EBITDA ratio of 4.92 times. The company has also shown low profitability per unit of total capital, with a return on capital employed of 6.15%. In the last quarter, Kesar Enterprises declared negative results after two consecutive positive quarters. Its operating cash flow has been the lowest at Rs 12.14 crore, while its net sales have also decreased to Rs 54.36 crore. These factors contribute to the company's risky status, with negative operating profits and a stock trading at higher valuations compared to its historical average. However, there are some positive indicators for the stock. It is currently in a bullish range and its technical trend has improved since 29-Nov-23, generating a return of 10.21%. Additionally, multiple factors such as MACD, Bollinger Band, and KST point towards a bullish trend. The majority shareholders of Kesar Enterprises are its promoters, indicating their confidence in the company's long-term performance. In fact, in the last 1 year, the stock has outperformed the BSE 500 and has shown market-beating performance in the long-term as well as near-term, with a return of 48.01%. In conclusion, while Kesar Enterprises may not be a strong investment choice at the moment due to its weak fundamentals and negative operating profits, investors can keep an eye on its technical trends and the confidence shown by its promoters. This can potentially lead to a more positive stock call in the future.