Creative Castings Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Q1 2024

Creative Castings, a microcap company in the castings and forgings industry, has recently received a 'Hold' rating from MarketsMOJO on May 27, 2024. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times.
In addition, the company has shown positive results in the first quarter of 2024, with its PBDIT (Quarterly) reaching a high of Rs 2.43 crore and its Operating Profit to Net Sales (Quarterly) at 15.89%. Its PBT less OI (Quarterly) has also reached a high of Rs 2.24 crore.

Technically, the stock is in a Mildly Bullish range and has shown improvement from a Sideways trend on May 27, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, are also indicating a bullish trend for the stock.

With a ROE of 13, the stock is currently trading at a fair valuation with a Price to Book Value of 2.7. However, it is trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 37.90%, while its profits have only risen by 5.6%. The PEG ratio of the company is 3.7.

The majority shareholders of Creative Castings are the promoters, indicating their confidence in the company. The stock has also consistently outperformed BSE 500 in the last 3 annual periods, with a return of 37.90%.

However, the company has shown poor long-term growth, with its Net Sales and Operating Profit growing at an annual rate of 11.49% and 11.02%, respectively, over the last 5 years. This may be a cause for concern for potential investors.

Overall, Creative Castings seems to be a stable company with a fair valuation and consistent returns in the short term. However, its long-term growth may need to be closely monitored.