MarketsMOJO Upgrades KM Sugar Mills to 'Hold' Rating, Technical Factors Support Bullish Outlook

KM Sugar Mills, a microcap company in the sugar industry, has recently received a stock upgrade from MarketsMOJO. The stock has been upgraded to a 'Hold' rating, indicating a neutral stance for investors.
The technical trend for KM Sugar Mills has improved from Mildly Bullish to Bullish on 27-May-24, resulting in a 2.25% return since then. The MACD and KST technical factors also support a Bullish outlook for the stock.

In terms of valuation, the company has an attractive ROCE of 8.1 and a low Enterprise value to Capital Employed ratio of 1. This indicates that the stock is trading at a discount compared to its historical valuations.

Over the past year, KM Sugar Mills has generated a return of 33.16%, while its profits have increased by 21%. This results in a PEG ratio of 0.6, indicating a potential undervaluation of the stock.

The majority shareholders of KM Sugar Mills are its promoters, which can be seen as a positive sign for investors. However, the company has weak long-term fundamental strength with an average ROCE of 0% and poor growth in net sales and operating profit over the last 5 years.

Additionally, KM Sugar Mills has a high Debt to EBITDA ratio of 0 times, indicating a low ability to service debt. The company's results for Mar 24 have been flat, with a decline in profits and a significant increase in interest expenses.

Overall, while KM Sugar Mills may have potential for growth in the future, its current performance and financials suggest a 'Hold' rating for investors.