Ramky Infrastructure Receives 'Hold' Rating from MarketsMOJO, Shows Impressive Financial Growth

Ramky Infrastructure, a smallcap company in the capital goods industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's positive financial results for the past 6 consecutive quarters. Its PBT LESS OI(Q) has grown by an impressive 1184.78%, while its PAT(Q) has seen a growth of 275.5%. The company's NET SALES(9M) has also shown a growth of 20.28%.
Technically, the stock is in a Mildly Bullish range and has shown improvement from a Sideways trend on 21-Jun-24. The Bollinger Band and OBV technical factors are also Bullish, indicating a positive outlook for the stock.

With a ROCE of 19.3, Ramky Infrastructure is currently trading at an attractive valuation with a 2 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 67.90%, while its profits have risen by 290.8%. The PEG ratio of the company is 0.1, further highlighting its strong performance.

Ramky Infrastructure has also outperformed the BSE 500 in the last 3 years, 1 year, and 3 months, making it a market-beating performer in the long term as well as the near term.

However, the company's long term fundamental strength is weak, with poor growth in Net Sales over the last 5 years and a high Debt to Equity ratio of 4.59 times. Its Return on Equity (avg) is also low at 3.50%, indicating low profitability per unit of shareholders' funds.

Additionally, 25.7% of the company's promoter shares are pledged, which can put downward pressure on the stock prices in falling markets. This proportion has also increased by 0.57% over the last quarter.

Overall, while Ramky Infrastructure has shown strong financial performance in the past few quarters, its long term fundamentals and high promoter pledged shares should be considered before making any investment decisions.