Aditya Spinners Receives 'Hold' Rating from MarketsMOJO Based on Technical Factors and Attractive Valuations

Aditya Spinners, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on October 29, 2024. This upgrade is based on various technical factors, such as the stock being in a bullish range and showing improvement in its technical trend since October 25, 2024, resulting in a 2.11% return.
The company also has attractive valuations with a ROCE of 2.8 and a discount compared to its historical valuations. However, its profits have fallen by -70% in the past year, despite generating a return of 22.64%. The majority shareholders of Aditya Spinners are its promoters.

On the other hand, the company has weak long-term fundamental strength with an average ROCE of 6.16% and poor growth in net sales and operating profit over the last 5 years. It also has a high debt to EBITDA ratio of 4.32 times, indicating a low ability to service debt.

In the latest quarter, the company's results were flat with a negative PAT of Rs -0.59 crore, a decrease of -290.3% compared to the previous quarter. The inventory turnover ratio for the first half of the year was also at its lowest at 10.16 times, while PBDIT was at its lowest at Rs 0.32 crore.

In the last year, Aditya Spinners has underperformed the market, generating a return of 22.64% compared to the market's (BSE 500) return of 35.31%. With these factors in mind, MarketsMOJO has upgraded the stock to a 'Hold' rating.