MarketsMOJO upgrades AksharChem (India) to 'Hold' rating based on strong financials and bullish trend

AksharChem (India), a microcap company in the dyes and pigments industry, has recently received a 'Hold' rating from MarketsMOJO on November 19, 2024. This upgrade is based on several factors, including the company's low Debt to Equity ratio of 0.05 times, indicating a strong financial position.
Technically, the stock is currently in a Mildly Bullish range, with multiple indicators such as MACD, Bollinger Band, and KST showing a bullish trend. Additionally, with a ROCE of 1.1, the stock is considered to be attractively valued with an Enterprise value to Capital Employed ratio of 0.9.

Furthermore, the stock is currently trading at a discount compared to its average historical valuations, making it an attractive option for investors. Over the past year, the stock has generated a return of 22.23%, while its profits have increased by 78.6%.

The majority shareholders of AksharChem (India) are the promoters, indicating their confidence in the company's future prospects. However, the company has shown poor management efficiency with a low ROCE of 4.89%, indicating low profitability per unit of total capital.

In terms of long-term growth, the company has not performed well, with a slow annual growth rate of 1.64% in Net Sales and a negative growth rate of -181.13% in Operating profit over the last 5 years.

In the latest financial results for September 2024, the company's Operating Cash Flow was at its lowest at Rs -6.55 Cr, indicating a need for improvement in this area.

Overall, while AksharChem (India) has shown some positive indicators, it is important for investors to carefully consider all aspects before making any investment decisions.