COSCO (India) Receives 'Hold' Rating from MarketsMOJO, Positive Short-Term Results but Long-Term Concerns Remain

COSCO (India) has recently received a 'Hold' rating from MarketsMOJO, indicating a neutral stance on the stock. The leather industry microcap company has shown positive results for the past 5 quarters, with its operating profit to interest ratio at a high of 2.71 times. Its PBDIT and PBT less OI have also reached their highest levels at Rs 3.36 crore and Rs 1.53 crore respectively.
Technically, the stock is in a mildly bullish range with multiple factors such as MACD, Bollinger Band, and KST pointing towards a bullish trend. Additionally, with a ROCE of 9.1, the stock is attractively valued with a 2 Enterprise value to Capital Employed. It is also currently trading at a discount compared to its average historical valuations.

Over the past year, COSCO (India) has outperformed the market (BSE 500) with a return of 58.76%. Its profits have also seen a significant increase of 264.4%, resulting in a low PEG ratio of 0.1. The majority shareholders of the company are its promoters, indicating their confidence in the company's performance.

However, the company's long-term fundamental strength is weak with a -11.00% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 4.71 times, indicating a low ability to service debt. The return on equity (average) is also low at 7.72%, indicating low profitability per unit of shareholders' funds.

Overall, while COSCO (India) has shown positive results in the short term, its long-term fundamentals and debt situation may be a cause for concern. Investors are advised to hold the stock for now and monitor its performance closely.