Lehar Footwears Receives 'Hold' Rating from MarketsMOJO, Shows Strong Net Sales and PBDIT Growth

Lehar Footwears, a microcap company in the leather industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company's net sales have shown a growth of 30.2% at Rs 63.20 crore and its PBDIT has reached a record high of Rs 5.88 crore. Additionally, the PBT less OI has also seen a significant increase at Rs 3.06 crore.
Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on October 21, 2024. Multiple factors such as MACD, Bollinger Band, DOW, and OBV are also indicating a bullish trend for the stock.

The majority shareholders of Lehar Footwears are the promoters, which can be seen as a positive sign for the company. It has also consistently generated returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods. However, the company's long-term fundamental strength is weak with an average ROCE of 5.88% and poor growth in operating profit over the last 5 years.

Moreover, Lehar Footwears has a high debt to EBITDA ratio of 4.32 times, indicating a low ability to service debt. Its valuation is also considered to be very expensive with a ROCE of 3.7 and an enterprise value to capital employed ratio of 3.2. The stock is currently trading at a premium compared to its historical valuations.

Despite generating a return of 56.05% in the last year, the company's profits have declined by -6.7%. This could be a cause for concern for investors. Overall, while Lehar Footwears has shown some positive growth in its financials, it is important to consider the weak long-term fundamentals and expensive valuation before making any investment decisions.