Sharda Motor Industries Receives 'Strong Buy' Rating, Shows Strong Fundamentals and Technical Strength

Sharda Motor Industries, a midcap company in the auto ancillary industry, has recently received a 'Strong Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 22.87% and a low Debt to Equity ratio of 0 times.
The company has also shown positive results for the last 4 consecutive quarters, with a growth of 40.79% in PAT (HY) and a highest ROCE (HY) of 38.99%. Additionally, the company's DEBTORS TURNOVER RATIO (HY) is at a high of 12.37 times.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since 05-Aug-24. The MACD and KST technical factors are also bullish, indicating a positive trend for the stock.

With a ROE of 29.8, the stock is fairly valued with a price to book value of 6.8. However, it is currently trading at a premium compared to its historical valuations. In the past year, the stock has generated a return of 161.19%, while its profits have risen by 47.1%. The PEG ratio of the company is 0.5, indicating a good potential for future growth.

Sharda Motor Industries has also consistently outperformed the BSE 500 index in the last 3 annual periods, further solidifying its strong performance.

However, investors should be aware of the risks associated with the company. One potential risk is the decreasing stake of promoters, which has decreased by -8.89% in the previous quarter. This may indicate reduced confidence in the future of the business.

Overall, Sharda Motor Industries is a strong midcap company in the auto ancillary industry, with a positive outlook and consistent returns. Investors should keep an eye on the decreasing promoter stake as a potential risk, but the company's strong fundamentals and technical factors make it a 'Strong Buy' according to MarketsMOJO.