Nikhil Adhesives Upgraded to 'Hold' by MarketsMOJO, Shows Strong Debt Servicing Ability.

Nikhil Adhesives, a microcap company in the chemicals industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.88 times. Additionally, the stock is currently in a Mildly Bullish range, with technical factors such as MACD and Bollinger Band also showing a Bullish trend.
However, the company's results for the quarter ending in March 2024 were flat, with the lowest Operating Profit to Interest ratio at 4.25 times and the highest Interest at Rs 2.09 crore. The company also has an expensive valuation with a 4.5 Enterprise value to Capital Employed and is currently trading at a discount compared to its average historical valuations.

In the past year, Nikhil Adhesives has generated a return of 11.53%, which is significantly lower than the market (BSE 500) returns of 38.60%. This underperformance may be attributed to the fact that domestic mutual funds hold only 0% of the company. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Despite being a microcap company, Nikhil Adhesives has the potential for growth in the chemicals industry. However, it is important to note that this is not a recommendation to buy or sell the stock. Investors should conduct their own research and make informed decisions based on their individual risk appetite.