Zodiac Energy Receives 'Buy' Rating from MarketsMOJO, Impressive Performance in Past Year.

15 minutes ago

Zodiac Energy, a microcap company in the engineering and industrial equipment industry, has received a 'Buy' rating from MarketsMojo due to its impressive long-term growth and consistent positive results. The stock has shown a significant improvement and outperformed the market in the last year. However, the company's high debt and expensive valuation pose potential risks for investors.

Zodiac Energy, a microcap company in the engineering and industrial equipment industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as no surprise, considering the company's impressive performance in the past year.

One of the main reasons for the 'Buy' rating is the company's healthy long-term growth. With an annual growth rate of 24.06% in net sales and a 253.42% increase in net profit, Zodiac Energy has shown outstanding results in the last quarter of March 2024. In fact, the company has consistently declared positive results for the past four quarters, with the highest net sales, PBDIT, and PBT LESS OI in the last quarter.

Technically, the stock is in a bullish range and has shown a significant improvement since May 2024, generating a return of 8.18%. Multiple factors, such as MACD, Bollinger Band, KST, and DOW, indicate a bullish trend for the stock.

In terms of market performance, Zodiac Energy has outperformed the market (BSE 500) with a return of 450.15% in the last year, compared to the market's 35.58% return.

However, there are some risks associated with investing in Zodiac Energy. The company has a high debt to EBITDA ratio of 3.51 times, which may affect its ability to service debt. Additionally, with a ROCE of 8.8, the company has a very expensive valuation with a 12.6 enterprise value to capital employed. The stock is also trading at a premium compared to its historical valuations.

Moreover, despite its impressive performance, domestic mutual funds hold only 0% of the company, which may indicate their discomfort with the stock's price or business. As a microcap company, Zodiac Energy may not have caught the attention of larger investors, which could be a potential risk for investors.

In conclusion, Zodiac Energy's recent 'Buy' rating from MarketsMOJO is a testament to its strong performance in the past year. However, investors should carefully consider the risks associated with the company before making any investment decisions.

Zodiac Energy

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