Artefact Projects Receives 'Hold' Rating from MarketsMOJO After Positive Results and Bullish Trend

Artefact Projects, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO on March 26, 2024. This upgrade comes after the company reported positive results in December 2023, with a 55.58% growth in net sales and a 77.62% growth in PAT. The PBT less OI(Q) also reached its highest at Rs 0.74 cr.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on March 26, 2024. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish trend for the stock.

The majority shareholders of Artefact Projects are non-institutional investors. The company has shown market-beating performance in both the long term and near term, with a return of 147.32% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with a 0.62% CAGR growth in net sales over the last 5 years. Additionally, its ability to service debt is poor, with a low EBIT to Interest (avg) ratio of 1.45. The company also has a low profitability per unit of shareholders' funds, with a Return on Equity (avg) of 5.47%.

The stock currently has an expensive valuation with a 1.2 Enterprise value to Capital Employed and is trading at a discount compared to its average historical valuations. While the stock has generated a high return of 147.32% in the past year, its profits have only risen by 50.1%, resulting in a low PEG ratio of 0.2.

Overall, MarketsMOJO's 'Hold' rating on Artefact Projects suggests a neutral stance on the stock, taking into consideration both its positive and negative aspects. Investors should carefully evaluate the company's fundamentals and market performance before making any investment decisions.