Ram Ratna Wires Receives 'Hold' Rating from MarketsMOJO, Shows Improved Trends and Fair Valuation

Ram Ratna Wires, a smallcap company in the non-ferrous metal industry, has recently received a 'Hold' rating from MarketsMOJO on March 18, 2024. This upgrade is based on technical analysis, with the stock currently in a Mildly Bullish range and showing improved trends since March 18, 2024. Additionally, the On-Balance Volume (OBV) indicator has been Bullish since the same date.
The company has a fair valuation with a ROCE of 18.9 and an Enterprise value to Capital Employed ratio of 2.4. It is also trading at a discount compared to its historical valuations. However, while the stock has generated a return of 59.05% in the past year, its profits have only risen by 7.3%, resulting in a PEG ratio of 3.1.

Ram Ratna Wires has consistently outperformed the BSE 500 index in the last 3 annual periods, with a return of 59.05% in the past year. However, the company has a high Debt to EBITDA ratio of 3.13 times, indicating a low ability to service debt. This is further supported by the fact that its operating profit has declined by an annual rate of -30.24% over the last 5 years.

In December 2023, the company reported flat results with a decrease in PBT LESS OI(Q) by -26.2%, the lowest CASH AND CASH EQUIVALENTS(HY) at Rs 2.44 cr, and a decrease in PAT(Q) by -8.7%. Despite its small size, domestic mutual funds hold only 0% of the company, which could indicate a lack of confidence in the company's current price or business.

Overall, while Ram Ratna Wires has shown consistent returns in the past, its high debt and poor long-term growth may be a cause for concern. Investors may want to hold onto their current positions and monitor the company's performance closely before making any further investment decisions.