RattanIndia Power Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in June Quarter

RattanIndia Power, a midcap company in the power generation and distribution industry, has recently received an upgraded stock call of 'Hold' from MarketsMOJO on October 7, 2024. This decision is based on the company's positive results in the June 2024 quarter, with the highest operating profit to interest ratio of 1.56 times and net sales of Rs 931.83 crore. Additionally, the PBT less OI ratio was also at its highest at Rs 8.47 crore.
Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. Furthermore, with a ROCE of 3.5, the stock is considered to have an attractive valuation with a 1.5 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 120.63%, while its profits have risen by 46%.

RattanIndia Power has shown consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, the company has a weak long-term fundamental strength with an average ROCE of 5.03%. It also has a low ability to service debt, with a high debt to EBITDA ratio of 9.44 times.

Investors should also take note that 88.65% of the promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets. Overall, while RattanIndia Power has shown positive results and a bullish trend, it is important for investors to consider the company's weak long-term fundamentals and high promoter pledged shares before making any investment decisions.