Lactose (India) Receives 'Hold' Rating After Consistent Positive Results and Impressive Growth

Lactose (India), a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the last 6 quarters. In the half-year period, the company's profits have grown by an impressive 142.94%, with the highest operating cash flow of Rs 8.78 crore.
Technically, the stock is currently in a mildly bullish range, with indicators such as MACD, Bollinger Band, and KST all pointing towards a bullish trend. Additionally, the company's ROCE of 18 and attractive valuation with a 2.8 Enterprise value to Capital Employed make it an attractive investment option. The stock is also trading at a discount compared to its historical valuations, making it a potential bargain for investors.

Over the past year, Lactose (India) has outperformed the market with a return of 175.77%, while its profits have risen by 233.2%. This impressive performance has resulted in a low PEG ratio of 0.1, indicating that the stock may be undervalued.

However, the company does have some weak long-term fundamental strengths, with an average ROCE of 6.46%. Additionally, its high Debt to EBITDA ratio of 4.55 times may make it difficult for the company to service its debt in the future.

Investors should also take note that 26.07% of the promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets. Overall, while Lactose (India) has shown strong performance in the past year, it is important for investors to carefully consider the company's long-term fundamentals and potential risks before making any investment decisions.