Kopran Receives 'Buy' Rating from MarketsMOJO: Strong Financials and Bullish Indicators Drive Upgrade

Kopran, a smallcap pharmaceutical company, has recently received a 'Buy' rating from MarketsMOJO on August 16, 2024. This upgrade is based on the company's strong ability to service debt, positive financial results, and bullish technical indicators.
One of the key factors contributing to the 'Buy' rating is Kopran's low Debt to EBITDA ratio of 1.16 times, indicating a strong ability to manage its debt. Additionally, the company has declared positive results for the last four consecutive quarters, with significant growth in PBT LESS OI(Q) at Rs 12.10 crore (891.80%), PAT(Q) at Rs 11.10 crore (300.7%), and NET SALES(HY) at Rs 325.52 crore (22.43%).

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since August 16, 2024. Multiple indicators such as MACD, Bollinger Band, KST, and OBV are also showing bullish signals.

Moreover, Kopran has an attractive valuation with a ROCE of 10.7 and a 2.4 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations, making it an attractive investment opportunity. In the past year, the stock has generated a return of 64.54%, while its profits have risen by 164.5%. The PEG ratio of the company is also at a low 0.1, indicating a potential undervaluation.

Kopran's market-beating performance is another reason for the 'Buy' rating. In the last year, the stock has generated a return of 64.54%, outperforming the market (BSE 500) returns of 36.18%.

However, there are some risks to consider before investing in Kopran. The company has shown poor long-term growth, with Net Sales growing at an annual rate of 10.80% and Operating profit at 13.24% over the last five years. Additionally, there has been a decrease in participation by institutional investors, who hold only 0.81% of the company's stake. This may indicate a lack of confidence in the company's fundamentals.

In conclusion, Kopran's recent 'Buy' rating from MarketsMOJO is based on its strong financials, bullish technical indicators, and attractive valuation. However, investors should also consider the risks associated with the company's long-term growth and institutional investor participation before making any investment decisions.