Sahyadri Industries Receives 'Hold' Rating from MarketsMOJO

Sahyadri Industries, a microcap company in the construction material industry, has recently received a 'Hold' rating from MarketsMOJO on December 15, 2023. This upgrade is based on several factors that indicate a neutral outlook for the company.
One of the main reasons for the 'Hold' rating is the company's strong ability to service its debt. With a low Debt to EBITDA ratio of 0.61 times, Sahyadri Industries has a good financial standing. Additionally, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on December 15, 2023. Factors such as MACD, Bollinger Band, and OBV also suggest a bullish sentiment for the stock.

However, the company's ROCE of 12.9 indicates a fair valuation with a 1.3 Enterprise value to Capital Employed. This means that the stock is currently trading at a premium compared to its average historical valuations. Furthermore, over the past year, while the stock has generated a return of 10.67%, its profits have fallen by -35.3%.

The majority shareholders of Sahyadri Industries are its promoters, which may indicate a lack of interest from other investors. Additionally, the company has shown poor long-term growth with an annual rate of -1.11% for operating profit over the last 5 years. Furthermore, the company has declared negative results for the last 8 consecutive quarters, with a -35.0% decrease in PAT(Q) and a 22.36% increase in INTEREST(9M). The OPERATING PROFIT TO INTEREST (Q) ratio is also at its lowest at 4.91 times.

Overall, while Sahyadri Industries has a strong ability to service its debt and is currently in a bullish range, its fair valuation and poor long-term growth may be cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.