Federal-Mogul Goetze (India): A Smallcap Auto Ancillary Company with Strong Financials and Positive Outlook

Federal-Mogul Goetze (India) is a smallcap company in the auto ancillary industry. Despite its size, the company has caught the attention of MarketsMOJO, a leading stock analysis platform, which has recently upgraded its stock call to 'Buy' on 2024-01-29.
One of the key reasons for this upgrade is the company's low Debt to Equity ratio, which is currently at 0 times, indicating a strong financial position. In addition, Federal-Mogul Goetze (India) has consistently delivered positive results for the last 6 quarters, with its operating cash flow at a high of Rs 210.39 crore and a ROCE of 16.06%.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its trend from mildly bullish to bullish on 25-Jan-24. This is supported by multiple factors such as MACD, Bollinger Band, KST, and OBV.

Moreover, the stock is attractively valued with a price to book value of 2 and is trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 22.06%, 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 its promoters, which can be seen as a positive sign for investors.

However, there are some risks associated with the company, such as poor long-term growth as its operating profit has declined 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, with its strong financials, positive technical indicators, and attractive valuation, Federal-Mogul Goetze (India) seems like a promising stock for investors to consider.