Federal-Mogul Goetze (India): Smallcap Company Making Big Strides

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 to 'Buy' on 26th 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. Additionally, Federal-Mogul Goetze (India) has been consistently delivering positive results for the last 6 quarters, with its operating cash flow at a high of Rs 210.39 crore and ROCE at 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. This is supported by various factors such as MACD, Bollinger Band, KST, and OBV.

Moreover, the company has a very attractive valuation with a price to book value of 2, and is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 21.90%, while its profits have increased by 56.5%. This is reflected in the company's PEG ratio of 0.3.

It is also worth noting that the majority shareholders of Federal-Mogul Goetze (India) are its promoters, which further instills 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 its 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) seems to be a promising company in the auto ancillary industry, with strong financials, positive technical indicators, and attractive valuations. Investors should consider these factors and do their own research before making any investment decisions.