Rishi Laser Receives 'Hold' Rating from MarketsMOJO

Rishi Laser, a microcap company in the engineering and industrial equipment industry, has recently received a 'Hold' rating from MarketsMOJO on December 8, 2023. This upgrade comes after the company has consistently shown positive results for the past 7 quarters, with its highest ROCE (HY) at 13.55%, inventory turnover ratio (HY) at 14.94 times, and debtors turnover ratio (HY) at 8.64 times.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on December 8, 2023. Multiple factors, such as MACD, Bollinger Band, and KST, contribute to the bullish sentiment for the stock.

With a ROCE of 11.5, the stock is fairly valued with an enterprise value to capital employed ratio of 1.6. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 212.01%, while its profits have risen by 202.8%. The PEG ratio of the company is 0.1, indicating a strong performance.

Rishi Laser has consistently delivered returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods. However, the company's long-term fundamental strength is weak, with an average ROCE of 4.44% and poor growth in net sales over the last 5 years.

Additionally, the company's ability to service its debt is weak, with a low EBIT to interest (avg) ratio of 0.05. Furthermore, 37.7% of the promoter shares are pledged, which could put downward pressure on the stock prices in falling markets.

Overall, while Rishi Laser has shown strong performance in the short term, its long-term fundamentals and high promoter pledged shares should be considered before making any investment decisions.