Shilpa Medicare Upgraded to 'Hold' by MarketsMOJO, Positive Financial Performance and Bullish Trend

Shilpa Medicare, a midcap pharmaceutical company, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's positive financial performance in the last four quarters. The company's PAT (Q) has grown by 112.6%, while its operating profit to interest ratio is at its highest at 3.10 times. Additionally, its PBDIT (Q) is also at its highest at Rs 73.60 cr.
From a technical standpoint, the stock is currently in a bullish range and the trend has improved from mildly bullish on 11-Nov-24. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish trend for the stock.

Institutional investors have also shown an increasing interest in the company, with a 1.08% increase in their stake in the previous quarter. They hold a collective 17.77% of the company, indicating their confidence in its fundamentals.

Shilpa Medicare has also outperformed the BSE 500 index in the long term as well as the near term, generating 137.15% returns in the last year. However, its long-term fundamental strength is weak, with a CAGR growth of only 13.11% in operating profits over the last 5 years. The company's return on equity (avg) is also low at 4.62%, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at an expensive valuation with a 3.5 enterprise value to capital employed. However, it is still at a discount compared to its average historical valuations. While the stock has generated a return of 137.15% in the last year, its profits have only risen by 222.4%, resulting in a PEG ratio of 1.1.

Overall, Shilpa Medicare's recent upgrade to a 'Hold' by MarketsMOJO is based on its positive financial performance and bullish technical trend. However, its weak long-term fundamental strength and expensive valuation should also be considered by investors.