Panasonic Energy India receives 'Hold' rating from MarketsMOJO, shows positive growth in recent quarters

Panasonic Energy India Company, a microcap company in the battery industry, has recently received a 'Hold' rating from MarketsMOJO on May 27, 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. The company's PBT LESS OI(Q) has also seen a significant growth of 570.5%, with PBDIT(Q) reaching its highest at Rs 6.43 crore and OPERATING PROFIT TO NET SALES(Q) 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 114.24% in the last year. However, the company's operating profit has seen a decline of -9.36% annually over the last 5 years, indicating poor long term growth.

With a ROE of 6, the stock is currently trading at a very expensive valuation with a 3.8 price to book value. It is also trading at a premium compared to its average historical valuations. Despite the high returns generated in the last year, the PEG ratio of the company is 0.1, suggesting that the stock may be overvalued. Investors are advised to hold their positions in the stock and monitor its performance closely.