Super Crop Safe Receives 'Hold' Rating After Strong Financial Results.

Super Crop Safe, a microcap company in the pesticides and agrochem industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company's positive financial results for the last four consecutive quarters.
In the first half of the financial year, Super Crop Safe's net sales grew by an impressive 52.78%, reaching Rs 17.34 crore. Additionally, their profits for the first nine months were also higher at Rs 1.26 crore. This growth has contributed to the company's attractive valuation, with a ROCE of 8.2 and an enterprise value to capital employed ratio of 1.8.

Technically, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. Furthermore, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, Super Crop Safe's stock has outperformed the market, generating a return of 160.90% compared to the BSE 500's return of 36.54%. This strong performance has also led to a low PEG ratio of 0.2, indicating that the stock may be undervalued.

However, the company does have some weak long-term fundamental strengths. Over the last five years, their operating profits have seen a negative CAGR growth of -16.62%. Additionally, their ability to service debt is weak, with a poor EBIT to interest ratio of 0.63. The company's return on equity is also low at 5.93%, indicating low profitability per unit of shareholders' funds.

Super Crop Safe's majority shareholders are non-institutional investors, which may suggest a lack of confidence from larger investors. Overall, while the company has shown strong growth in the short term, its long-term fundamentals may need improvement for sustained success.