Foseco India Upgraded to 'Hold' Rating by MarketsMOJO, Strong Financials and Bullish Trend

Foseco India, a smallcap company in the chemicals industry, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on various factors, including the company's low Debt to Equity ratio, positive financial results for the last 15 quarters, and a technically bullish trend.
The company has consistently shown strong performance, with its PBDIT(Q) and PBT LESS OI(Q) reaching their highest levels at Rs 23.95 cr and Rs 21.54 cr respectively. It also has a significant amount of cash and cash equivalents, with the highest amount being Rs 237.78 cr in the last half year.

In terms of technical analysis, the stock has shown a mild bullish trend and has improved from a sideways trend on 18-Nov-24. The key technical factor, MACD, has been bullish since the same date.

Foseco India has also outperformed the BSE 500 index in the last 3 annual periods, with a return of 25.94% in the last year alone. However, its long-term growth has been poor, with net sales growing at an annual rate of 8.57% and operating profit at 2.81% over the last 5 years.

The company's valuation is considered to be very expensive, with a price to book value of 9.2 and a ROE of 22.8. However, the stock is currently trading at a fair value compared to its historical valuations. Its PEG ratio, which takes into account its growth rate, is at 2.4.

It is worth noting that despite its size, domestic mutual funds hold only 0.56% of the company. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, Foseco India has shown strong financial performance and a technically bullish trend, but its long-term growth and valuation may be a cause for concern. Investors are advised to do their own research and make informed decisions before investing in the stock.