RHI Magnesita India Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financials and Growth Potential

RHI Magnesita India, a midcap company in the refractories industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's high management efficiency, with a ROCE (Return on Capital Employed) of 23.18%. Additionally, the company has a strong ability to service debt, with a low Debt to EBITDA ratio of 0.88 times.
The company has also shown healthy long-term growth, with its Net Sales growing at an annual rate of 37.37%. In the latest quarter, RHI Magnesita India has achieved impressive results, with its DEBTORS TURNOVER RATIO (HY) at the highest level of 4.63 times, PBDIT (Q) at Rs 153.89 crore, and OPERATING PROFIT TO NET SALES (Q) at the highest level of 17.51%.

The majority shareholders of RHI Magnesita India are the promoters, which can be seen as a positive sign for investors. However, the stock is currently in a Mildly Bearish range, with a key technical factor - KST (Know Sure Thing) - being Bearish since 06 Nov 2024.

In terms of valuation, the stock has a ROCE of 8.5, which is considered expensive with a 3 Enterprise value to Capital Employed. However, it is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of -17.33%, but its profits have risen by 57.7%, resulting in a PEG (Price/Earnings to Growth) ratio of 0.9.

It is worth noting that RHI Magnesita India has underperformed the market (BSE 500) in the last 1 year, with negative returns of -17.33% compared to the market's return of 33.50%. Despite this, the company's strong financials and positive long-term growth potential make it a stock worth considering for investors.