Panasonic Energy India receives 'Hold' rating despite positive short-term results

Panasonic Energy India Company, a microcap company in the batteries industry, has recently received a 'Hold' rating from MarketsMOJO on May 7, 2024. This downgrade is due to the company's low Debt to Equity ratio, which is currently at 0 times.
Despite this, the company has shown positive results in the last three consecutive quarters, with a growth in net profit of 30.64% in December 2023. In addition, PBT LESS OI(Q) has grown at an impressive rate of 570.5%, and PBDIT(Q) is at its highest at Rs 6.43 crore. The company's operating profit to net sales(Q) is also at its highest at 8.60%.

Technically, the stock is in a mildly bullish range, with both MACD and KST technical factors showing a bullish trend. The majority shareholders of the company are the promoters, indicating their confidence in the company's performance.

In the long term, the stock has outperformed the BSE 500 and has generated a return of 111.60% in the last year. However, the company's operating profit has shown poor growth over the last five years, with an annual rate of -199.59%.

With a ROE of 6, the stock is currently trading at a very expensive valuation with a price to book value of 3.8. It is also trading at a premium compared to its average historical valuations. Despite the impressive return of 111.60% in the last year, the PEG ratio of the company is 0.1, indicating that the stock may be overvalued.

Overall, while Panasonic Energy India Company has shown positive results in the short term, its long term growth has been poor. Investors may want to hold off on buying the stock until there is a more favorable valuation.