Kesar Petroproducts Receives 'Hold' Rating After Positive Results and Bullish Technical Indicators

Kesar Petroproducts, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported very positive results in June 2024, with a growth in net sales of 23.05%. This is the third consecutive quarter in which the company has declared positive results.
One of the key factors contributing to the 'Hold' rating is the company's higher PAT (HY) at Rs 5.17 crore and net sales (Q) at Rs 45.80 crore, which has grown at 23.1%. Additionally, the PBDIT (Q) is at its highest at Rs 3.13 crore. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

The majority shareholders of Kesar Petroproducts are the promoters, which is a positive sign for investors. The stock has also outperformed the market (BSE 500) with a return of 214.94% in the last year, compared to the market's return of 34.61%.

However, the company's long-term fundamental strength is weak, with a -56.95% CAGR growth in operating profits over the last 5 years. The ROCE is also at -1.9, indicating an expensive valuation with a 1.5 enterprise value to capital employed. Despite this, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated a significant return of 214.94%, its profits have risen by 683%. This results in a PEG ratio of 0, which suggests that the stock may be undervalued. Overall, the 'Hold' rating from MarketsMOJO reflects a neutral stance on Kesar Petroproducts, with both positive and negative factors to consider before making any investment decisions.