ACGL: A Strong Performer in Auto Ancillary Industry, Upgraded to 'Buy' by MarketsMOJO

Automobile Corporation Of Goa (ACGL) has recently caught the attention of investors and analysts, with MarketsMOJO upgrading their stock call to 'Buy' on November 4, 2024. This smallcap company in the auto ancillary industry has been making waves with its outstanding financial results and positive trends.
One of the key factors that make ACGL a 'Buy' is its low Debt to Equity ratio, which is at 0 times on average. This indicates a strong financial position and stability for the company. In fact, in the latest quarter, the company saw a growth in Net Profit of 64.25%, showcasing its strong performance.

Moreover, ACGL has consistently declared positive results for the last 3 consecutive quarters, with its highest Operating Cash Flow at Rs 60.95 Cr and ROCE at 18.17%. The company also has a high dividend per share of Rs 20.00, making it an attractive option for investors.

From a technical standpoint, the stock is currently in a Mildly Bullish range and has shown a positive trend since October 30, 2024, generating 1.19% returns. The MACD and KST technical factors also indicate a Bullish trend for the stock.

In terms of valuation, ACGL has a Fair valuation with a Price to Book Value of 6.8 and a PEG ratio of 0.5. It is currently trading at a discount compared to its historical valuations, making it a good opportunity for investors.

However, there are some risks to consider. The company has shown poor long-term growth with Net Sales and Operating Profit growing at a rate of 8.58% and 12.35% respectively over the last 5 years. Additionally, despite its potential, domestic mutual funds hold only 0% of the company, which could indicate a lack of confidence in the stock.

Overall, Automobile Corporation Of Goa is a promising company with consistent returns over the last 3 years and a strong financial position. With its recent upgrade to 'Buy' by MarketsMOJO and attractive valuation, it is definitely a stock to keep an eye on.