Kesar Petroproducts Receives 'Hold' Rating After Strong Q2 Results

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%. The company has also shown consistent positive results for the last three quarters, with a higher PAT (HY) of Rs 5.17 crore and a 23.1% growth in net sales (Q). Additionally, the PBDIT (Q) has reached its highest at Rs 3.13 crore.
The stock is currently in a bullish range and the technical trend has improved from mildly bullish on November 11, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

The majority shareholders of Kesar Petroproducts are the promoters, which adds to the market beating performance of the stock. In the last year, the stock has generated a return of 281.47%, significantly higher than the market (BSE 500) returns of 30.30%.

However, the company's long-term fundamental strength is weak, with a -56.95% CAGR growth in operating profits over the last five years. The ROCE is also at -1.7, indicating a very expensive valuation with a 1.8 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 high return of 281.47%, its profits have only risen by 683%. This results in a PEG ratio of 0, indicating that the stock may be undervalued. Overall, MarketsMOJO's 'Hold' rating suggests a neutral stance on Kesar Petroproducts, with a focus on the company's current performance rather than future potential.