Active Clothing Co Receives 'Hold' Rating from MarketsMOJO, Technical Indicators Point to Bullish Trend

Active Clothing Co, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on October 17, 2024. This upgrade is based on various technical indicators such as MACD, Bollinger Band, KST, and OBV, which all point towards a bullish trend for the stock.
Since October 14, 2024, the stock has shown a significant improvement in its technical trend, moving from mildly bearish to bullish and generating a return of 27.77%. Additionally, with a ROCE of 8.8 and an attractive valuation of 1.9 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its historical valuations.

Over the past year, Active Clothing Co has generated a return of 113.58%, while its profits have increased by 115%. This has resulted in a low PEG ratio of 0.4, indicating that the stock is undervalued.

The majority shareholders of the company are the promoters, which can be seen as a positive sign for investors. Active Clothing Co has also consistently outperformed the BSE 500 index in the last three annual periods, further solidifying its position as a promising investment.

However, the company does have some weak points, such as a -0.40% CAGR growth in operating profits over the last five years, indicating a weak long-term fundamental strength. Additionally, the company has a high Debt to EBITDA ratio of 4.89 times, which may affect its ability to service debt. The Return on Equity (avg) of 2.18% also suggests low profitability per unit of shareholders' funds.

In the latest quarter, Jun 24, Active Clothing Co's results were flat, with the highest interest expense of Rs 2.48 crore. Overall, while the stock has shown promising growth in the short term, it is important for investors to consider the company's long-term fundamentals before making any investment decisions.