Riddhi Corporate Services Faces Technical Shift Amid Strong Financial Growth and Debt Concerns

Riddhi Corporate Services, operating within the Computers - Software & Consulting industry, has recently undergone an adjustment in evaluation. This revision reflects a shift in the technical outlook, moving from a mildly bullish stance to a sideways trend.
In terms of technical indicators, the MACD shows a mildly bearish signal on a weekly basis, while it remains mildly bullish on a monthly scale. The Relative Strength Index (RSI) indicates no significant signals for both weekly and monthly periods. Bollinger Bands and the KST also present a bearish outlook on the weekly front, although the monthly KST remains mildly bullish.

Despite a positive financial performance in the latest quarter, with net sales growing by 52.83% and profit after tax increasing by 52.48%, the company faces challenges in long-term fundamental strength. The average Return on Capital Employed (ROCE) stands at 6.06%, and the company has a high Debt to EBITDA ratio of 3.89 times, indicating potential difficulties in servicing debt.

Riddhi Corporate Services has consistently underperformed against benchmarks over the past three years, generating a return of -13.74% in the last year.

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