Oriental Rail Infrastructure Receives Upgraded Stock Call from MarketsMOJO

Oriental Rail Infrastructure, a smallcap company in the railway industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on November 28, 2024.
The company has shown healthy long-term growth with an annual growth rate of 30.85% in Net Sales. In fact, in the latest quarter of September 2024, the company declared very positive results with a growth in Net Sales of 62.18%. This positive trend has been consistent for the last 5 consecutive quarters.

Oriental Rail Infrastructure has also shown strong financial performance with its highest operating cash flow of Rs 5.78 Cr and highest return on capital employed (ROCE) of 11.33% in the half-yearly period. Its inventory turnover ratio is also at a high of 3.01 times.

The stock is currently trading at a discount compared to its historical valuations and has a fair valuation with a 3.7 enterprise value to capital employed. In the past year, the stock has generated a return of 101.79%, outperforming the market (BSE 500) returns of 26.36%. This is reflected in the company's low PEG ratio of 0.2.

However, the company does have a high debt to EBITDA ratio of 5.29 times, indicating a low ability to service debt. This may be a concern for investors.

Technically, the stock is currently in a mildly bearish range with both MACD and KST technical factors showing a bearish trend.

It is also worth noting that despite its small size, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

Overall, Oriental Rail Infrastructure has shown strong growth and financial performance, but its high debt and bearish technical trend may be a cause for concern. Investors may want to hold onto the stock for now and keep an eye on any changes in the company's debt situation.