Shri Jagdamba Polymers Receives 'Buy' Rating from MarketsMOJO, Shows Strong Growth Potential in Packaging Industry

Shri Jagdamba Polymers, a microcap company in the packaging industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong management efficiency, with a high ROCE of 39.48%, and its ability to service debt with a low Debt to EBITDA ratio of 0.31 times.
In the latest quarter, the company has shown positive results with a growth of 61.96% in PAT(HY) at Rs 16.18 cr, the highest NET SALES(Q) at Rs 109.99 cr, and the highest PBDIT(Q) at Rs 16.45 cr. This has led to a bullish trend in the stock, with a 4.61% return since the upgrade on 08-Aug-24. Technical indicators such as MACD, Bollinger Band, and KST also support a bullish outlook for the stock.

The majority shareholders of Shri Jagdamba Polymers are the promoters, which adds to the positive sentiment for the company. However, there are some risks to consider, such as poor long-term growth with a 5-year annual growth rate of 13.78% in Net Sales and 9.72% in Operating profit. Additionally, the stock is currently trading at a premium compared to its historical valuations, with a PEG ratio of 3.3 and a high ROE of 14.1.

Despite these risks, Shri Jagdamba Polymers has shown strong performance and potential for growth in the packaging industry. With a 'Buy' rating from MarketsMOJO, it is definitely a stock to keep an eye on for investors.