Bhagwati Autocast Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability and Healthy Growth

Bhagwati Autocast, a microcap company in the castings/forgings industry, has recently received a 'Hold' rating from MarketsMOJO on September 11, 2024. This upgrade comes as a result of the company's strong ability to service its debt, with a low Debt to EBITDA ratio of 1.45 times.
In addition, Bhagwati Autocast has shown healthy long-term growth, with an annual operating profit growth rate of 40.35%. This was reflected in their positive results in June 2024, with a higher PAT (HY) of Rs 6.56 crore.

The technical trend for the stock is currently sideways, indicating no clear price momentum. However, it has improved from a bearish trend on September 5, 2024, and has generated a return of 1.27% since then.

With a ROCE of 26.1, Bhagwati Autocast is considered to have an attractive valuation, with a 3.1 Enterprise value to Capital Employed. The stock is also trading at a discount compared to its average historical valuations.

However, in the past year, while the stock has generated a return of 2.64%, its profits have fallen by -1.3%. This could be a cause for concern for investors.

It is worth noting that the majority shareholders of Bhagwati Autocast are the promoters themselves. This could indicate their confidence in the company's future prospects.

Despite this, the stock has underperformed the market in the last year, with a return of only 2.64%, compared to the market (BSE 500) returns of 32.75%. This could be a factor for investors to consider before making any investment decisions. Overall, with a 'Hold' rating from MarketsMOJO and a mix of positive and negative factors, it is important for investors to carefully evaluate Bhagwati Autocast before making any decisions.