MarketsMOJO Upgrades Bhatia Communications & Retail to 'Hold' Based on Positive Financial Results

MarketsMOJO has recently upgraded its stock call on Bhatia Communications & Retail (India) to 'Hold' on July 30, 2024. This decision was based on the company's positive financial results for the last six consecutive quarters. The PBT LESS OI(Q) has shown a significant growth of 191.69%, while the NET SALES(9M) has also increased by 23.01%. The company's PBDIT(Q) has reached its highest at Rs 4.45 cr.

However, the technical trend for the stock is currently sideways, indicating no clear price momentum. Although, it has improved from being mildly bearish on July 29, 2024, it has only generated a return of -1.93% since then.

Bhatia Communications & Retail (India) also has an attractive valuation with a ROE of 17.4 and a price to book value of 4.1. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 37.16%, while its profits have increased by 35.6%. The PEG ratio of the company is 0.7.

The majority shareholders of the company are the promoters, which can be seen as a positive sign for investors. However, the company has a high debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt. This, coupled with a poor long-term growth rate of 17.10% for operating profit over the last 5 years, may raise concerns for potential investors.

In addition, Bhatia Communications & Retail (India) has also shown a low ability to generate profitability per unit of total capital (equity and debt) with a Return on Capital Employed (avg) of 0.45%. Overall, while the company has shown positive financial results in recent quarters, it is important for investors to consider all factors before making any investment decisions.