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 February 12, 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. Additionally, the PBT less OI(Q) has reached its highest at Rs 0.74 cr.
Technically, the stock is in a bullish range and the trend has improved from mildly bullish on February 12, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating 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 119.56% 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. Its ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of 1.45. The company's return on equity (avg) is at 5.47%, indicating low profitability per unit of shareholders' funds.

Moreover, with a ROCE of 5.3, the stock is currently trading at an expensive valuation with a 1.2 enterprise value to capital employed. However, it is still trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 119.56%, its profits have only risen by 50.1%, resulting in a 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 performance and financials before making any investment decisions.