Federal-Mogul Goetze (India) Downgraded to 'Hold' by MarketsMOJO

Federal-Mogul Goetze (India), a smallcap company in the auto ancillary industry, has recently been downgraded to a 'Hold' by MarketsMOJO on December 20, 2023. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times.
However, the company has shown positive results for the last 6 consecutive quarters, with its highest operating cash flow at Rs 210.39 crore and highest return on capital employed at 16.06%. It also has a strong cash position with Rs 376.52 crore in cash and cash equivalents.

Technically, the stock is in a mildly bullish range with multiple factors such as MACD, KST, and OBV indicating a bullish trend. Additionally, with a return on equity of 11.4%, the stock is currently trading at a very attractive valuation with a price to book value of 1.9. It is also trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 14.17%, while its profits have increased by 56.5%. This gives the company a PEG ratio of 0.3, indicating a potential undervaluation.

The majority shareholders of Federal-Mogul Goetze (India) are the promoters, which can be seen as a positive sign for investors. However, the company has shown poor long-term growth with an annual rate of -2.01% in operating profit over the last 5 years.

Overall, while the company has shown positive results in the short term, its long-term growth may be a cause for concern. Investors are advised to hold onto their stocks for now and keep an eye on the company's performance in the future.