Savera Industries Receives 'Hold' Rating, Shows Positive Short-Term Results

Savera Industries, a microcap company in the hotel industry, has recently received a 'Hold' rating from MarketsMOJO on December 1, 2023. This downgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times.
Despite this, Savera Industries has shown positive results for the past 7 consecutive quarters, with its highest operating cash flow of Rs 12.33 crore and highest net sales of Rs 18.34 crore in the last quarter. The company also has a high dividend per share of Rs 3.00.

Technically, the stock is in a bullish range and has shown a 37.58% return since October 30, 2023. Multiple factors, such as MACD, Bollinger Band, KST, and DOW, indicate a bullish trend for the stock.

With a return on equity of 13.9, Savera Industries is fairly valued with a price to book value of 2.1. However, the stock is currently trading at a premium compared to its historical valuations. In the past year, the stock has generated a return of 50.77%, while its profits have increased by 38.3%. The PEG ratio of the company is 0.4.

The majority shareholders of Savera Industries are the promoters, indicating their confidence in the company's performance. The stock has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company has shown poor long-term growth with a negative annual growth rate of -1.19% in net sales over the last 5 years. This may be a cause for concern for investors.

In conclusion, while Savera Industries has shown positive results in the short term, its long-term growth may be a factor to consider before making any investment decisions.