Ritesh International Receives 'Hold' Rating from MarketsMOJO After Positive Q2 Results

Ritesh International, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on September 30, 2024. This upgrade comes after the company reported positive results in the quarter ending June 2024, with its net sales reaching a record high of Rs 26.41 crore and its PBDIT and PBT LESS OI also showing significant improvement.
Technically, the stock is currently in a Mildly Bullish range and has shown an improvement from its previous Mildly Bearish trend on September 30, 2024. This can be attributed to multiple bullish factors such as MACD, Bollinger Band, and KST.

In terms of valuation, Ritesh International is currently trading at an attractive level with a ROCE of 2.6 and an Enterprise value to Capital Employed ratio of 1.5. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

Despite generating a negative return of -1.40% in the past year, Ritesh International's profits have increased by 80%, resulting in a low PEG ratio of 0.2. However, the majority of the company's shareholders are non-institutional, indicating a weak long-term fundamental strength with an average ROCE of 9.52%. Furthermore, the company's ability to service its debt is also weak, with a poor EBIT to Interest ratio of 1.85.

In comparison to the market (BSE 500), which has generated a return of 39.48% in the last year, Ritesh International has significantly underperformed. This highlights the need for caution when considering investing in this microcap company in the chemicals industry.