MarketsMOJO Upgrades Ritesh International to 'Hold' Rating After Record High Sales and Bullish Technical Trend

Ritesh International, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on October 11, 2024. This upgrade comes after the company reported positive results in the quarter ending June 2024, with its net sales reaching a record high of Rs 26.41 crore and PBDIT at Rs 0.53 crore. The PBT less OI also saw a significant increase at Rs 0.17 crore.
Technically, the stock is currently in a Mildly Bullish range, with its technical trend improving from Mildly Bearish on October 11, 2024. The MACD and KST technical factors also indicate a bullish trend for the stock.

Attractive valuation is another factor contributing to the 'Hold' rating. With a ROCE of 2.6, the stock is trading at a discount compared to its average historical valuations. Additionally, despite a negative return of -17.58% in the past year, the company's profits have increased by 80%, resulting in a low PEG ratio of 0.2.

However, Ritesh International does have some weak fundamental strengths. Its average ROCE of 9.52% indicates a weak long-term performance, and the company's ability to service its debt is also poor with a low EBIT to Interest ratio of 1.85.

In the past year, the stock has significantly underperformed the market, with the BSE 500 generating returns of 34.90% while Ritesh International has seen negative returns of -17.58%. The majority of the company's shareholders are non-institutional investors.

Overall, while Ritesh International shows potential for growth with its positive results and attractive valuation, it also has some fundamental weaknesses that should be considered before making any investment decisions.