Polson . Receives Upgraded Stock Call from MarketsMOJO, Showing Positive Short-Term Growth

Polson ., a microcap company in the chemicals industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on May 27, 2024.
The upgrade is based on the positive results shown by the company in December 2023. The company's PAT(Q) has grown by an impressive 250.0%, while its NET SALES(Q) have grown by 22.60%. Additionally, the company's OPERATING PROFIT TO NET SALES(Q) is at its highest at 20.31%.

Technically, the stock is in a Mildly Bullish range and the trend has improved from Sideways on May 24, 2024. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish trend for the stock.

With a ROCE of 6.3, the stock is currently trading at an attractive valuation with a 1.3 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 22.18%, while its profits have risen by 45.7%. The PEG ratio of the company is 0.7, indicating a potential for growth.

The majority shareholders of Polson . are the promoters, which shows their confidence in the company. However, the company's long-term fundamental strength is weak with a -5.60% CAGR growth in Operating Profits over the last 5 years. Its ability to service its debt is also weak with a poor EBIT to Interest (avg) ratio of 0. The company's Return on Equity (avg) is at 7.12%, signifying low profitability per unit of shareholders' funds.

In the last 1 year, the stock has underperformed the market with a return of 22.18%, compared to the market (BSE 500) returns of 35.99%. Overall, while the stock has shown positive growth in the short term, its long-term fundamentals and performance have been weak. Investors are advised to hold the stock for now and monitor its performance closely.