Century Extrusions Receives 'Hold' Rating from MarketsMOJO, Shows Positive Technical Trend and Attractive Valuations

Century Extrusions, a microcap company in the aluminium and aluminium products industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's technical trend, which has improved from sideways to mildly bullish on November 29, 2024. The key technical factor, MACD, has also been bullish since the same date.
In terms of valuation, Century Extrusions has an attractive ROCE of 19.1 and a 2 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. While the stock has generated a return of 35.46% in the past year, its profits have also increased by 10.7%. However, the PEG ratio of the company is 2.3, indicating a slower long-term growth potential.

The majority shareholders of Century Extrusions are the promoters, which shows their confidence in the company. The stock has consistently outperformed BSE 500 in the last 3 annual periods, further highlighting its potential.

However, the company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.74. This could be a cause for concern for investors. Additionally, the company has a low Return on Equity (avg) of 8.10%, indicating low profitability per unit of shareholders' funds.

In terms of long-term growth, Century Extrusions has shown a slow growth rate with net sales growing at an annual rate of 10.66% and operating profit at 13.98% over the last 5 years. The company's results for September 2024 were also flat, with the highest interest expense at Rs 2.64 crore.

Overall, while Century Extrusions has shown some positive trends and attractive valuations, there are also some concerns regarding its debt and long-term growth potential. Investors may want to hold onto the stock for now and monitor its performance closely.