Alfa Ica (India) Receives 'Hold' Rating and Shows Technical Strength, But Long-Term Fundamentals Remain Weak

Alfa Ica (India), a microcap company in the wood and wood products industry, has recently received a 'Hold' rating from MarketsMOJO. The technical trend for the stock has improved from Mildly Bullish to Bullish on November 22, 2024. This is supported by factors such as MACD, Bollinger Band, and KST, making it a technically sound investment.
In terms of valuation, Alfa Ica (India) has a Very Attractive ROCE of 8.5 and a 1.4 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 61.03%, while its profits have risen by 24.8%. The PEG ratio of the company is also favorable at 0.8.

The majority shareholders of Alfa Ica (India) are its promoters, indicating their confidence in the company's performance. The stock has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with an average ROCE of 8.72%. Its growth has been slow, with Net Sales growing at an annual rate of 5.38% and Operating profit at 11.99% over the last 5 years. Additionally, the company has a high Debt to EBITDA ratio of 4.03 times, indicating a low ability to service debt.

In the latest quarter, Alfa Ica (India) reported flat results, with its DEBTORS TURNOVER RATIO(HY) at its lowest at 5.47 times. While the stock may have potential for short-term gains, investors should carefully consider the company's long-term fundamentals before making any investment decisions.