Parmax Pharma Receives 'Hold' Rating Upgrade

Parmax Pharma, a microcap pharmaceutical company, has recently received a stock call upgrade from MarketsMOJO. The stock has been upgraded to a 'Hold' rating, indicating a neutral stance on the company's performance.
The technical trend for Parmax Pharma has improved from Mildly Bullish to Bullish on January 4th, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST, making the stock technically in a bullish range.

In terms of valuation, Parmax Pharma has an attractive ROCE of -0.7 and a 2.1 Enterprise value to Capital Employed ratio. The stock is currently trading at a discount compared to its average historical valuations. However, the company's majority shareholders are non-institutional, which may indicate a lack of confidence from larger investors.

On the other hand, Parmax Pharma has weak long-term fundamental strength with operating losses and poor growth in net sales and operating profit over the last 5 years. The company also has a weak ability to service its debt, with a poor EBIT to Interest ratio.

In the recent quarter, the company's performance has been below par with PBDIT(Q) at its lowest at Rs -0.76 cr, PBT LESS OI(Q) at its lowest at Rs -1.38 cr, and EPS(Q) at its lowest at Rs -3.66.

Overall, Parmax Pharma has shown flat results in September 2023 and has underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. With this in mind, MarketsMOJO has upgraded the stock to a 'Hold' rating, suggesting a cautious approach towards investing in Parmax Pharma.