Sandhar Technologies Limited Receives 'Buy' Rating and Shows Strong Financial Performance

Sandhar Technologies Limited, a smallcap company in the auto ancillary industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last 5 consecutive quarters and has a low Debt to Equity ratio of 0.50 times on average.
The company's ROCE (HY) is at a high of 11.48%, while its INVENTORY TURNOVER RATIO (HY) is at 10.45 times, indicating efficient use of its resources. In addition, its PBT LESS OI (Q) has grown at a rate of 21.22%, reaching Rs 32.45 crore.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on 04-Sep-24. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are all indicating a bullish trend for the stock.

Moreover, with a ROCE of 10.9, the stock is attractively valued with a 2.6 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 62.21%, while its profits have risen by 42.4%. The PEG ratio of the company is 0.8, indicating a potential undervaluation.

The majority shareholders of Sandhar Technologies Limited are its promoters, which can be seen as a positive sign for investors. The stock has also shown market-beating performance in the long term as well as the near term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, there are some risks associated with investing in the company. Its poor long-term growth, with an annual rate of -7.62% for Operating profit over the last 5 years, could be a concern for investors. It is important to keep an eye on the company's growth and performance in the future.

Overall, with its positive financial results, attractive valuation, and market-beating performance, Sandhar Technologies Limited seems like a promising investment opportunity for those looking to invest in the auto ancillary industry.