Rudra Global Infra Products Receives 'Hold' Rating from MarketsMOJO, Technical Factors Indicate Positive Outlook

Rudra Global Infra Products, a microcap company in the iron and steel industry, has recently received a 'Hold' rating from MarketsMOJO on June 14, 2024. This upgrade is based on the company's current technical trend, which is in a bullish range. However, it is worth noting that the technical trend has deteriorated from bullish on May 30, 2024.
The company's MACD and KST technical factors are also currently bullish, indicating a positive outlook for the stock. With a ROCE of 14.6, Rudra Global Infra Products is considered to have an attractive valuation with a 2.3 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

Over the past year, the stock has generated a return of 111.19%, while its profits have increased by 43.9%. This results in a PEG ratio of 0.4, indicating a potential undervaluation of the stock.

The majority shareholders of Rudra Global Infra Products are the promoters, which can be seen as a positive sign for investors. The company has also shown consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

However, the company's long-term fundamental strength is weak, with a -1.65% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high Debt to EBITDA ratio of 4.13 times, indicating a low ability to service debt. The Return on Equity (avg) of 9.11% also signifies low profitability per unit of shareholders' funds.

In the latest quarter, the company's results were flat, with the highest interest expense of Rs 4.70 crore. Overall, while Rudra Global Infra Products shows potential for growth and has received a 'Hold' rating, investors should also consider the company's weak long-term fundamentals and high debt levels before making any investment decisions.