Federal-Mogul Goetze (India) Downgraded to 'Hold' by MarketsMOJO, Despite Positive Results and Strong Cash Position

Federal-Mogul Goetze (India), a smallcap company in the auto ancillary industry, has recently been downgraded to a 'Hold' by MarketsMOJO. 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, Bollinger Band, KST, and OBV indicating a bullish trend. Additionally, with a ROE of 11.4 and a price to book value of 2, the stock is currently trading at a discount compared to its historical valuations.

While the stock has generated a return of 18.91% in the past year, its profits have risen by 56.5%, resulting in a low PEG ratio of 0.3. However, it is worth noting that the majority shareholders of the company are promoters.

On the downside, the company has shown poor long-term growth with an annual rate of -2.01% in operating profit over the last 5 years. This may be a cause for concern for potential investors.

Overall, Federal-Mogul Goetze (India) has a mixed performance record and it is recommended to hold the stock for now until there is a significant improvement in its long-term growth prospects.