Sri Ramakrishna Mills (Coimbatore) Receives 'Hold' Rating and Shows Strong Performance in Market

Sri Ramakrishna Mills (Coimbatore) has recently been upgraded to a 'Hold' rating by MarketsMOJO, a leading stock analysis platform. This upgrade comes as the company has shown positive results for the last four consecutive quarters, with a significant growth in net sales and higher profits.
In terms of technical analysis, the stock is currently in a bullish range and has shown improvement from mildly bullish to bullish on April 26, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV also indicate a bullish trend for the stock.

With a ROCE of 7, the company has a fair valuation and a 1.5 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 150.64%, while its profits have risen by 698%. This gives the company a PEG ratio of 0, indicating a strong performance.

The majority shareholders of Sri Ramakrishna Mills (Coimbatore) are the promoters, which further adds to the company's stability and potential for growth. The stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance in the long term as well as the near term.

However, it is important to note that Sri Ramakrishna Mills (Coimbatore) is a high debt company with a debt to equity ratio (avg) of 3.87 times. This may be a concern for investors looking for strong long-term fundamental strength.

Overall, with its recent upgrade to a 'Hold' rating and strong performance in the market, Sri Ramakrishna Mills (Coimbatore) shows potential for growth. However, investors should also consider the company's high debt and make informed decisions based on their risk appetite.