Shemaroo Entertainment Receives 'Hold' Rating and Positive Financial Growth

Shemaroo Entertainment, a microcap company in the lifestyle industry, has recently received a 'Hold' rating from MarketsMOJO on October 23, 2023. This upgrade comes after the company reported positive results in September 2023, following flat results in June 2023.
The company's PBT LESS OI(Q) has shown a significant growth of 178.5%, reaching Rs 6.37 crore. Its NET SALES(Q) also reached its highest at Rs 198.91 crore, while PBDIT(Q) reached its highest at Rs 17.20 crore. These positive financial indicators have contributed to the stock's technical trend, which has improved from Mildly Bullish to Bullish on November 24, 2023. Since then, the stock has generated a return of 13.07%.

Furthermore, the stock is currently trading at a premium compared to its average historical valuations. However, it has an attractive valuation with a 0.8 Enterprise value to Capital Employed and a PEG ratio of 2.1. The majority shareholders of Shemaroo Entertainment are its promoters.

Despite these positive aspects, the company has shown weak long-term fundamental strength with a -21.03% CAGR growth in Operating Profits over the last 5 years. Additionally, its Return on Equity (avg) is at 7.18%, indicating low profitability per unit of shareholders' funds. In the last 1 year, the stock has underperformed the market, generating a return of only 5.10% compared to the market's return of 16.72%.

Overall, while Shemaroo Entertainment has shown positive financial growth and technical trends, it also has some weaknesses that investors should consider before making any investment decisions.