Sri KPR Industries Receives 'Hold' Rating from MarketsMOJO After Positive Quarterly Results

Sri KPR Industries, a microcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO on April 2, 2024. This upgrade comes after the company reported positive results in December 2023, with a significant growth of 361.2% in its quarterly PAT (profit after tax). Additionally, the company's ROCE (return on capital employed) for the half-year period was at its highest at 5.64%.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on April 2, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

The majority shareholders of Sri KPR Industries are its promoters, which is a positive sign for investors. The company has also shown market-beating performance in the long term, generating a return of 72.45% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with a -29.78% 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 0.02. The company's return on equity is at 4.87%, indicating low profitability per unit of shareholders' funds.

In terms of valuation, Sri KPR Industries has a very expensive valuation with a price to book value of 0.6 and a PEG ratio of 0. This suggests that the stock is trading at a fair value compared to its historical valuations. However, while the stock has generated a high return of 72.45% in the past year, its profits have only risen by 471%, indicating a potential overvaluation.

Overall, with a 'Hold' rating from MarketsMOJO, investors should carefully consider the company's weak long-term fundamentals and expensive valuation before making any investment decisions.