MPDL Receives 'Hold' Rating from MarketsMOJO After Positive Results and Bullish Trend

MPDL, a microcap company in the sugar industry, has recently received a 'Hold' rating from MarketsMOJO on May 16, 2024. This upgrade comes after the company reported positive results in December 2023, with a higher PAT (HY) of Rs 23.15 crore.
The stock is currently in a bullish range, with its technical trend improving from mildly bullish on May 16, 2024. The MACD and KST technical factors also indicate a bullish trend. The majority shareholders of MPDL are its promoters.

Over the last three years, MPDL has consistently outperformed the BSE 500, generating a return of 96.07%. However, the company's long-term fundamental strength is weak, with operating losses and a poor growth rate of -2.20% in operating profit over the last five years. Additionally, the company has a high debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt.

With a ROCE of -0.2, MPDL is currently trading at a very expensive valuation with an enterprise value to capital employed ratio of 0.5. However, the stock is currently trading at a discount compared to its average historical valuations. Despite the stock's impressive return of 96.07% in the past year, its profits have only risen by 426.4%, indicating a potential overvaluation.

Overall, while MPDL has shown strong performance in the past year, its long-term fundamentals and valuation suggest a 'Hold' rating for now. Investors should closely monitor the company's financials and future performance before making any investment decisions.