N G Industries Experiences Revision in Its Stock Evaluation Amid Record Profit Growth

N G Industries, a microcap player in the hospital and healthcare services sector, has recently experienced a revision in its score from MarketsMOJO. This adjustment comes on the heels of the company achieving a record profit after tax of Rs 2.97 crore, alongside a notable increase in earnings per share, which now stands at Rs 8.87.
The stock has shown signs of resilience, currently positioned within a mildly bullish range, marking a shift from a previous bearish trend observed in December 2024. Key technical indicators, including the Bollinger Band, have also reflected a bullish sentiment since that time.

Valuation metrics further bolster the stock's standing, with a return on equity of 14 and a price to book value of 1.4, suggesting that N G Industries is trading at a fair value relative to its historical benchmarks. Over the past year, the stock has delivered a return of 11.72%, while profits have surged by 17%. The company's PEG ratio, an important measure of price relative to earnings and growth, is currently at a healthy 0.6.

Promoter ownership remains strong, indicating a level of confidence in the company's trajectory. However, it is worth noting that the long-term fundamental strength of N G Industries appears to be lacking, as evidenced by a negative compound annual growth rate in operating profits over the last five years. Additionally, the company's ability to manage its debt is concerning, highlighted by a low EBIT to interest ratio of 1.61.

Despite underperforming the broader market—returning 11.72% compared to the BSE 500 index's 23.86%—the recent revision in its score suggests that N G Industries may still hold potential for future growth. The stock has also been added to MarketsMOJO's list, reflecting a cautious optimism about its prospects moving forward.