United Van Der Horst Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth and Positive Results

United Van Der Horst, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO on November 25, 2024. This upgrade comes as the company has shown healthy long-term growth, with an annual operating profit growth rate of 45.00%. In addition, their net profit has seen a significant increase of 994.12%, leading to very positive results in September 2024.
The company's dividend per share (DPS) is at its highest at Rs 1.00, with a dividend payout ratio (DPR) of 67.32%. Their net sales have also reached a high of Rs 7.95 crore. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. Despite this, the technical trend has improved since November 25, 2024, and has generated a return of 4.99% since then.

The majority shareholders of United Van Der Horst are the promoters, indicating their confidence in the company's future. However, the company's management efficiency is poor, with a low return on capital employed (ROCE) of 3.83%. This signifies low profitability per unit of total capital (equity and debt). Additionally, the company has a high debt to EBITDA ratio of 4.83 times, indicating a low ability to service debt.

The stock is currently trading at a discount compared to its average historical valuations. While it has generated a return of 23.02% in the past year, its profits have only risen by 44.7%, resulting in a PEG ratio of 1.6. With a ROCE of 3.2, the stock is considered to have a very expensive valuation, with an enterprise value to capital employed ratio of 2.5. Overall, MarketsMOJO has upgraded United Van Der Horst to a 'Hold' rating, taking into consideration its recent financial performance and current valuation.