DCM Nouvelle Receives 'Hold' Rating from MarketsMOJO After Positive Results and Bullish Technical Factors

DCM Nouvelle, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on September 9, 2024. This upgrade comes after the company's positive results in June 2024, with a growth of 166.0% in PBT LESS OI(Q) at Rs 1.60 crore and a higher PAT(HY) of Rs 8.62 crore.
Technically, the stock is in a mildly bullish range and its MACD and KST technical factors are also bullish. With a ROCE of 2.3, the stock is currently trading at an attractive valuation with an enterprise value to capital employed ratio of 1.1. Additionally, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 24.68%, while its profits have risen by 184.3%. The PEG ratio of the company is 1.8, indicating a potential for future growth.

The majority shareholders of DCM Nouvelle are the promoters, which can be seen as a positive sign for the company's stability and growth potential. However, the company has weak long-term fundamental strength with a -8.30% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 11.48 times, indicating a low ability to service debt. The company has also reported losses, resulting in a negative ROE.

Overall, DCM Nouvelle's recent upgrade to a 'Hold' rating by MarketsMOJO is a positive sign for the company. However, investors should consider the company's weak long-term fundamentals and high debt before making any investment decisions.