Ramky Infrastructure receives 'Hold' rating after consistent positive results in past 6 quarters

Ramky Infrastructure, a smallcap company in the capital goods industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the past 6 quarters. In the last quarter, the company's PBT LESS OI(Q) has grown by an impressive 1184.78%, while its PAT(Q) has seen a growth of 275.5%. Additionally, its NET SALES(9M) has also shown a growth of 20.28%.
Technically, the stock is currently in a Mildly Bullish range, with its technical trend improving from Mildly Bearish on 03-Jul-24. The RSI and Bollinger Band technical factors are also Bullish, indicating a positive outlook for the stock.

With a ROCE of 19.3, the company has a Very Attractive valuation and a low 2.1 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 58.19%, while its profits have risen by 290.8%. The PEG ratio of the company is also at a low 0.1, showcasing its market beating performance.

However, Ramky Infrastructure also has some weaknesses. It is a high debt company with weak long term fundamental strength, as its Net Sales has only grown by an annual rate of 4.32% over the last 5 years. The company's Debt to Equity ratio (avg) is at a high 4.59 times, and it has a low Return on Equity (avg) of 3.50%, indicating low profitability per unit of shareholders funds.

Another concern is that 25.7% of the company's promoter shares are pledged. In a falling market, this can put additional downward pressure on the stock prices. The proportion of pledged holdings has also increased by 0.57% over the last quarter.

Overall, while Ramky Infrastructure has shown positive results and has a bullish technical outlook, its high debt and low profitability are areas of concern. Investors should keep a close eye on the company's performance and monitor any changes in its financials.