Alfa Ica (India) Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Bullish Trend Support

Alfa Ica (India), a microcap company in the wood and wood products industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the stock's technical trend, which has improved from Mildly Bullish to Bullish on November 29, 2024. The company's stock is currently trading at a discount compared to its historical valuations, making it a potentially attractive investment opportunity.
One of the key factors contributing to the 'Hold' rating is the stock's Bullish trend, supported by indicators such as MACD, Bollinger Band, and KST. Additionally, Alfa Ica (India) has a very attractive valuation with a ROCE of 8.5 and an Enterprise value to Capital Employed ratio of 1.5. This indicates that the company is generating good returns on its capital and is trading at a discount compared to its peers.

In the past year, the stock has generated a return of 69.92%, outperforming the BSE 500 index. Furthermore, the company's profits have also increased by 24.8%, resulting in a PEG ratio of 0.9. This suggests that the stock may be undervalued and has the potential for future growth.

However, Alfa Ica (India) does have some weak fundamental strengths, such as a low average ROCE of 8.72% and poor long-term growth in net sales and operating profit. The company also has a high Debt to EBITDA ratio of 4.03 times, indicating a low ability to service debt.

In the short term, the company's results have been flat, with the lowest DEBTORS TURNOVER RATIO(HY) at 5.47 times. This may be a cause for concern for investors, but the company's majority shareholders are promoters, which could provide some stability.

Overall, Alfa Ica (India) has shown market-beating performance in the long term and near term, making it a stock worth considering for a 'Hold' position. However, investors should also be aware of the company's weak long-term fundamentals and high debt levels.