Rishi Laser Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Short Term

Rishi Laser, a microcap company in the engineering and industrial equipment industry, has recently received a 'Hold' rating from MarketsMOJO on May 21, 2024. This upgrade comes as the company has shown positive results for the past 7 consecutive 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 in a bullish range and has shown improvement since May 18, 2024, generating a return of 2.4%. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish trend for the stock.

With a ROCE of 11.5, the stock is fairly valued with an enterprise value to capital employed ratio of 1.9. It is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 267.76%, while its profits have increased by 102.3%. The PEG ratio of the company is 0.2, indicating a strong performance.

The majority shareholders of Rishi Laser are non-institutional investors. The company has consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index.

However, the company's long-term fundamental strength is weak, with an average ROCE of 0%. Its net sales have only grown by 0.18% annually over the last 5 years, indicating poor long-term growth. Additionally, the company's ability to service its debt is weak, with a poor EBIT to interest (avg) ratio of 0.

Overall, while Rishi Laser has shown positive results in the short term, its long-term fundamental strength and growth potential may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.