RHI Magnesita India Upgraded to 'Hold' Rating by MarketsMOJO for Strong Management Efficiency and Healthy Growth

RHI Magnesita India, a midcap company in the refractories industry, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on the company's strong management efficiency, with a high return on capital employed (ROCE) of 23.18%. Additionally, the company has a low debt to EBITDA ratio of 0.88 times, indicating a strong ability to service its debt.
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 and operating profit to net sales ratio being the highest at 4.63 times and 17.51%, respectively. The majority shareholders of the company are its promoters, which can be seen as a positive sign for investors.

However, the stock is currently in a mildly bearish range, with its Bollinger Band and KST technical factors also being bearish. Its ROCE of 8.5 indicates an expensive valuation, with an enterprise value to capital employed ratio of 2.9. However, the stock is currently trading at a fair value compared to its average historical valuations.

In the past year, RHI Magnesita India has underperformed the market, generating negative returns of -17.65%, while the market (BSE 500) has generated returns of 37.10%. However, the company's profits have risen by 57.7%, resulting in a PEG ratio of 0.9. Overall, while the stock may not have performed well in the past year, its strong financials and positive long-term growth potential make it a 'Hold' for now.