Mangalam Organics Receives 'Hold' Rating from MarketsMOJO Based on Financial Performance and Market Trends

Mangalam Organics, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on October 3rd, 2024. This downgrade is based on the company's current financial performance and market trends.
One of the main reasons for this downgrade is the company's low Debt to EBITDA ratio of 1.16 times, indicating a strong ability to service its debt. Additionally, Mangalam Organics has shown positive results for the last four consecutive quarters, with a higher PAT (HY) of Rs 4.12 crore and the highest PBDIT (Q) of Rs 10.87 crore. However, the PBT LESS OI (Q) is the highest at Rs 1.88 crore.

Technically, the stock is in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. Furthermore, the company has a fair valuation with a ROCE of 4.2 and an Enterprise value to Capital Employed ratio of 1.4. The stock is also currently trading at a discount compared to its average historical valuations.

In the past year, Mangalam Organics has generated a return of 39.30%, while its profits have risen by 128.2%. This has resulted in a PEG ratio of 0.6 for the company. It is worth noting that the majority shareholders of the company are the promoters.

However, one area of concern for the company is its poor long-term growth, with an annual rate of -142.15% for operating profit over the last five years. This could be a contributing factor to the downgrade by MarketsMOJO.

Overall, while Mangalam Organics has shown positive results in the short term, its long-term growth potential may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.