Shree Hari Chemicals Export Receives 'Hold' Rating After Strong Short-Term Performance

Shree Hari Chemicals Export, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last 5 consecutive quarters, with a growth of 27.79% in net sales and a higher PAT of Rs 1.32 crore in the last 9 months.
Technically, the stock is in a mildly bullish range and has shown improvement since 26-Mar-24, generating a return of -9.95%. Multiple factors such as RSI, MACD, and KST are also indicating a bullish trend for the stock.

With a ROCE of 2.6, the company has an attractive valuation with a 1.3 Enterprise value to Capital Employed. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 56.89%, while its profits have risen by 101.2%. The PEG ratio of the company is also at a low 0.3.

The majority shareholders of Shree Hari Chemicals Export are non-institutional investors. The stock has outperformed the market (BSE 500) with a return of 56.89% in the last year, compared to the market's return of 35.33%.

However, the company's long-term fundamental strength is weak with a -31.90% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also poor with a low EBIT to Interest ratio of 0. Additionally, the company's Return on Equity is at a low 1.30%, indicating low profitability per unit of shareholders' funds.

Overall, while Shree Hari Chemicals Export has shown positive results in the short term, its long-term fundamental strength and profitability may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.