Atul Auto receives 'Hold' rating from MarketsMOJO, shows positive results in recent quarters

Atul Auto, a smallcap company in the auto industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last three consecutive quarters, with a higher PAT (HY) of Rs 10.41 crore and the highest net sales (Q) of Rs 160.14 crore.
Technically, the stock is in a bullish range and the trend has improved from mildly bullish on 07-Aug-24. Multiple factors such as MACD, KST, and DOW are also indicating a bullish trend for the stock.

With a ROCE of 4.2, the stock is fairly valued and has a 3.8 enterprise value to capital employed. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 78.50%, while its profits have risen by 129.3%. The PEG ratio of the company stands at 2.5.

In the long term, Atul Auto has shown market-beating performance, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, there are some concerns regarding its weak long-term fundamental strength, with a -23.75% CAGR growth in operating profits over the last 5 years. The company has also been able to generate a low return on equity (avg) of 4.14%, indicating low profitability per unit of shareholders' funds.

Overall, while Atul Auto has shown positive results in the recent quarters and has a bullish trend in the stock market, there are some concerns about its long-term fundamental strength. Investors may want to hold onto their positions for now and keep an eye on the company's performance in the future.