Suraj Receives 'Hold' Rating, Shows Strong Financial Performance

Suraj, a microcap company in the iron and steel industry, has recently received a 'Hold' rating from MarketsMOJO on December 27, 2023. This upgrade comes after the company has consistently shown positive results for the past 11 quarters.
In terms of financial performance, Suraj has recorded its highest operating cash flow of Rs 44.62 crore and a significant growth of 190.73% in PBT less OI(Q) at Rs 4.39 crore. Its PAT(Q) has also seen a growth of 104.9%. These numbers indicate a strong financial standing for the company.

Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on December 27, 2023. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

With a ROCE of 21.5, Suraj is fairly valued with a 2.5 Enterprise value to Capital Employed. Moreover, the stock is currently trading at a discount compared to its historical valuations. In the past year, Suraj has generated a return of 191.41%, while its profits have increased by 332.2%. The PEG ratio of the company is also at a low of 0, indicating a potential undervaluation.

The majority shareholders of Suraj are its promoters, which can be seen as a positive sign for investors. 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, Suraj does have some weak fundamental strengths in the long term. Its average ROCE of 8.57% is below the industry average, and its net sales have only grown at an annual rate of 10.82% over the last 5 years. The company also has a high debt to EBITDA ratio of 3.46 times, indicating a low ability to service debt.

Overall, Suraj's recent upgrade to a 'Hold' rating by MarketsMOJO is a positive sign for the company. With strong financial performance and a bullish trend, the stock has the potential to continue its market-beating performance in the future. However, investors should also consider the company's weak long-term fundamental strengths before making any investment decisions.