Shangar Decor's Stock Upgraded to 'Buy' by MarketsMOJO, Showing Strong Growth and Low Debt

Shangar Decor, a microcap company in the miscellaneous industry, has recently caught the attention of investors as its stock has been upgraded to a 'Buy' by MarketsMOJO on November 25, 2024. One of the main reasons for this upgrade is the company's strong long-term fundamental strength and low debt. In fact, Shangar Decor has shown a growth in net profit of 1850% and has declared positive results for the last three consecutive quarters. Its net sales have also grown by 139.37% and its ROCE is at a high of 12.41%. Technically, the stock is in a bullish range and has shown a 15.31% return since November 12, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV are all indicating a bullish trend for the stock. Moreover, the majority shareholders of Shangar Decor are non-institutional investors, which shows a strong market beating performance. In the last year, the stock has generated a return of 137.05%, which is significantly higher than the market (BSE 500) returns of 27.32%. However, there are some risks associated with investing in Shangar Decor. The company has a low ROCE of 2.40%, indicating poor management efficiency. Its ability to service its debt is also weak with a poor EBIT to Interest ratio of 0.17. Additionally, the company's long-term growth has been slow, with net sales growing at an annual rate of 37.56% and operating profit at 2.66% over the last five years. Furthermore, Shangar Decor has a high valuation with a ROCE of 12.6 and an enterprise value to capital employed ratio of 6.6. However, the stock is currently trading at a fair value compared to its historical valuations. In conclusion, while Shangar Decor has shown strong fundamental strength and a bullish trend, investors should also consider the risks associated with the company before making any investment decisions.