Bombay Cycle & Motor Agency Receives 'Hold' Stock Call from MarketsMOJO After Positive Results and Technical Indicators.

Bombay Cycle & Motor Agency, a microcap trading company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on November 8, 2024.
The decision to upgrade the stock to 'Hold' is based on positive results in September 2024, with the company's operating cash flow reaching a high of Rs 4.60 crore. Additionally, the company's profit before tax, less other income, also saw a significant increase at Rs 0.54 crore. The net profit after tax for the quarter was the highest at Rs 1.22 crore.

Technically, the stock is currently in a bullish range and the trend has improved from mildly bullish on November 8, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV are all indicating a bullish trend for the stock.

The majority shareholders of Bombay Cycle & Motor Agency are the promoters, which adds to the positive sentiment for the stock. The company has also shown consistent returns over the last three years, outperforming the BSE 500 index in each of the last three annual periods.

However, the company's long-term fundamental strength is weak with a 10.61% CAGR growth in operating profits over the last five years. The company's ability to service its debt is also a concern, with a poor EBIT to Interest (average) ratio of 1.69.

The stock is currently trading at a premium compared to its average historical valuations, with a price to book value of 2.9 and a ROE of 12.7. While the stock has generated a return of 93.59% in the past year, its profits have only increased by 36.9%, resulting in a PEG ratio of 0.6.

Overall, Bombay Cycle & Motor Agency's upgraded stock call to 'Hold' by MarketsMOJO is based on its recent positive results and technical indicators. However, investors should also consider the company's weak long-term fundamental strength and expensive valuation before making any investment decisions.