Captain Polyplast Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend and Strong Returns

Captain Polyplast, a microcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO on September 24, 2024. This upgrade comes as the stock has shown a bullish trend and has generated a return of 33.64% since August 5, 2024.

The technical trend for Captain Polyplast has improved from Mildly Bullish to Bullish, with factors such as MACD, KST, and DOW all pointing towards a positive outlook. Additionally, the company has an attractive valuation with a ROCE of 15.2 and a 2.8 Enterprise value to Capital Employed ratio. The stock is also trading at a discount compared to its historical valuations.

In the past year, Captain Polyplast has not only generated a return of 223.59%, but its profits have also increased by 81.2%. This is reflected in the company's low PEG ratio of 0.4, indicating its market-beating performance in both the long term and near term. Furthermore, the stock has outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, there are some weak fundamental strengths for Captain Polyplast in the long term. The company has only shown a 2.15% CAGR growth in Operating Profits over the last 5 years, indicating a slow growth rate. Additionally, the company has a high Debt to EBITDA ratio of 3.66 times, which may affect its ability to service debt.

In the latest quarter, Captain Polyplast's results have been flat, with the OPERATING PROFIT TO INTEREST (Q) at its lowest at 2.37 times and a decrease of -15.3% in PAT(Q) at Rs 3.20 crore. The DEBTORS TURNOVER RATIO(HY) is also at its lowest at 1.67 times.

Overall, while Captain Polyplast's stock is currently in a bullish range and has shown strong performance in the past year, its long term fundamental strengths and high debt levels should be considered before making any investment decisions.