Markets Mojo, a stock research agency, has given a ‘Hold’ rating to Bajaj Hindusthan Sugar amid bullish performance in the bourses which led to a return of 20.05% since 07-Jun-24. The company said that all the technical indicators- MACD, Bollinger Band, KST and OBV are all pointing towards a bullish outlook for the stock.
With a ROCE of 0.3 and an enterprise value to capital employed ratio of 1.1, the stock is trading at a discount compared to its historical valuations. Additionally, the company has shown strong performance in the past year, with a return of 149.29% and a 35.9% increase in profits.
However, operating profits showing a negative CAGR growth of -14.28% over the last 5 years, and a high debt to EBITDA ratio of 18.74 times are persistent concerns for the company which could affect it’s ability to service its debt, amongst other issues.
Overall, while Bajaj Hindusthan Sugar has shown market-beating performance in the short term, the long-term fundamentals and high promoter pledged shares are a cause for concern.
Hence, investors are advised to hold onto their positions and monitor the company’s performance closely.
The company’s share was trading at 43.40 up 7.61% at 1:30 pm.
