Riddhi Siddhi Gluco Biols Receives 'Hold' Rating After Strong Performance and Bullish Trend

Riddhi Siddhi Gluco Biols, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared very positive results in December 2023, with a growth in net sales of 373.35%. The company has also shown positive results for the last four consecutive quarters, with a growth in PAT(Q) at Rs 7.98 crore and net sales(Q) at its highest at Rs 135.52 crore.
The stock is currently in a bullish range and the technical trend has improved from mildly bullish on April 29, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock. The majority shareholders of the company are promoters, which can be seen as a positive sign for investors.

In terms of market performance, Riddhi Siddhi Gluco Biols has outperformed the market (BSE 500) with a return of 67.43% in the last year, compared to the market's return of 36.89%. However, the company's long-term fundamental strength is weak, with a -185.93% CAGR growth in operating profits over the last five years. The company's ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of -0.72. Additionally, the company has a low profitability per unit of shareholders' funds, with a return on equity (avg) of 1.98%.

Investing in Riddhi Siddhi Gluco Biols may be considered risky, as the stock is currently trading at a higher valuation compared to its historical average. While the stock has shown a significant return of 67.43% in the last year, its profits have only risen by 611.8%, resulting in a PEG ratio of 0. This indicates that the stock may be overvalued and investors should proceed with caution.

Overall, Riddhi Siddhi Gluco Biols has shown positive results in the recent past and has a bullish trend in the stock market. However, its weak long-term fundamental strength and high valuation may pose a risk for investors. It is advisable to do thorough research and consult with a financial advisor before making any investment decisions.