Kings Infra Ventures Receives 'Hold' Rating from MarketsMOJO, Despite Positive Growth and Returns

Kings Infra Ventures, a microcap company in the aquaculture industry, has recently received a 'Hold' rating from MarketsMOJO on February 1, 2024. This downgrade is due to various factors that have been analyzed by the experts at MarketsMOJO.
One of the main reasons for the 'Hold' rating is the company's healthy long-term growth. With an annual growth rate of 22.73% in net sales and 55.34% in operating profit, Kings Infra Ventures has shown positive results in the last 8 consecutive quarters. In fact, in the latest quarter, the company recorded its highest net sales and operating profit to net sales ratio.

Technically, the stock is in a mildly bullish range with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. The majority shareholders of the company are the promoters, which can be seen as a positive sign for investors.

However, there are some concerns regarding the company's management efficiency. With a low return on capital employed (ROCE) of 9.66%, Kings Infra Ventures has a low profitability per unit of total capital. Additionally, the company has a high debt to EBITDA ratio of 4.38 times, indicating a low ability to service debt. The return on equity (ROE) is also low at 7.32%.

Despite these concerns, the stock has generated consistent returns over the last 3 years, outperforming the BSE 500 index. However, with a ROCE of 22.6, the stock is currently trading at a very expensive valuation with an enterprise value to capital employed ratio of 8.6. This is higher than its average historical valuations.

In the past year, while the stock has generated a return of 113.93%, its profits have only risen by 99.5%. This gives the company a PEG ratio of 0.6, indicating that the stock is currently trading at a discount compared to its average historical valuations.

Overall, while Kings Infra Ventures has shown positive growth and consistent returns, there are concerns regarding its management efficiency and high valuation. Investors are advised to hold onto their stocks and monitor the company's performance closely.