Kesar Petroproducts Receives 'Hold' Rating After Strong Q2 Results and Bullish Technical Trend

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 positive results for the last three consecutive quarters, with a higher PAT (HY) of Rs 5.17 crore and a 23.1% growth in net sales (Q) at Rs 45.80 crore. Additionally, PBDIT (Q) has reached its highest at Rs 3.13 crore. The stock is currently in a bullish range and its technical trend has improved from mildly bullish on October 9, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, contribute to the bullish sentiment for the stock. The majority shareholders of Kesar Petroproducts are its promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 151.29% in the last year, compared to the market's 37.10% return. However, the company's long-term fundamental strength is weak, with a -56.95% CAGR growth in operating profits over the last five years. Its ROCE is also at -1.7, indicating a very expensive valuation with a 1.4 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 151.29%, its profits have risen by 683%. This results in a PEG ratio of 0, indicating that the stock may be undervalued. Overall, MarketsMOJO's 'Hold' rating suggests that investors should closely monitor the company's performance before making any investment decisions.