Federal-Mogul Goetze (India): A Promising Auto Ancillary Company

Federal-Mogul Goetze (India) is a smallcap company in the auto ancillary industry. However, despite its size, the company has been making big strides in the market. In fact, MarketsMOJO has recently upgraded its stock call on the company to 'Buy' on 1st December 2023.
One of the main reasons for this upgrade is the company's low Debt to Equity ratio, which is currently at 0 times. This indicates a strong financial position and stability for the company. In addition, Federal-Mogul Goetze (India) has been consistently delivering positive results for the last 6 quarters, with its operating cash flow, ROCE, and cash and cash equivalents at their highest levels.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since 1st December 2023. Multiple factors such as MACD, Bollinger Band, KST, and OBV are all indicating a bullish trend for the stock.

Moreover, with a ROE of 11.4 and a price to book value of 2, the stock is currently trading at a very attractive valuation. It is also trading at a discount compared to its historical valuations, making it an even more attractive investment opportunity. In the past year, the stock has generated a return of 21.44%, while its profits have increased by 56.5%. This is reflected in the company's low PEG ratio of 0.3.

It is worth noting that the majority shareholders of Federal-Mogul Goetze (India) are the promoters themselves, which shows their confidence in the company's growth potential.

However, like any investment, there are risks involved. One of the main risks for this company is its poor long-term growth, with operating profit growing at an annual rate of -2.01% over the last 5 years. This is something investors should keep in mind while making their investment decisions.

Overall, Federal-Mogul Goetze (India) is a promising company in the auto ancillary industry, with strong financials, positive technical indicators, and attractive valuations. Investors looking for a potential buy in this sector should definitely consider this stock.