Unjha Formulations Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results and Bullish Trend

Unjha Formulations, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on August 2, 2024. This upgrade comes as the company has shown positive results for the last three consecutive quarters, with its highest operating cash flow of Rs 1.03 crore and a 26.97% growth in net sales in the last half year. Additionally, its PBDIT has also reached its highest at Rs 0.72 crore.
Technically, the stock is in a mildly bullish range with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. With a return on equity of 28.9%, the company has a very attractive valuation with a price to book value of 4.3. It is also trading at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 117.98%, while its profits have risen by 37%. The PEG ratio of the company is 0.1, indicating a strong performance.

The majority shareholders of Unjha Formulations are non-institutional investors, and the company has shown market-beating performance in the long term as well as the near term. Along with generating a return of 117.98% in the last year, the stock has also outperformed BSE 500 in the last three years, one year, and three months.

However, the company's long-term fundamental strength is weak, with a 2.11% CAGR growth in operating profits over the last five years. Additionally, its ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of 0.20.

Overall, while Unjha Formulations has shown positive results and a bullish trend, its long-term fundamental strength and debt-servicing ability may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.