Fiberweb (India) upgraded to 'Hold' by MarketsMOJO, but concerns remain

Fiberweb (India) is a microcap company in the textile industry. Recently, MarketsMOJO has upgraded its stock call to 'Hold' on November 7, 2024. This upgrade is based on several factors, including the company's low Debt to Equity ratio, which is currently at 0 times. Additionally, the stock is technically in a Bullish range and the technical trend has improved from Mildly Bullish on November 7, 2024. Other technical indicators such as MACD, Bollinger Band, and KST also suggest a Bullish outlook for the stock.
Furthermore, the company has a Fair valuation with a Price to Book Value of 0.9 and a Return on Equity (ROE) of 3.5. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 65.32%, outperforming the market (BSE 500) returns of 31.95%.

However, Fiberweb (India) has shown poor management efficiency with a low ROE of 7.55%. This indicates low profitability per unit of shareholders' funds. The company has also experienced poor long-term growth, with Net Sales growing at an annual rate of -6.90% and Operating profit at -158.47% over the last 5 years.

In addition, the company has declared negative results for the last 5 consecutive quarters. The Profit After Tax (PAT) for the half-year has grown at -50.93%, while the Profit Before Tax (PBT) less Other Income (OI) for the quarter has fallen at -50.51%. The Return on Capital Employed (ROCE) for the half-year is at its lowest at 5.33%.

Overall, while Fiberweb (India) has shown market-beating performance in the past year, its poor management efficiency and long-term growth may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.