G G Engineering Receives 'Hold' Rating from MarketsMOJO After Strong Financial Performance

G G Engineering, a microcap company in the electric equipment industry, has recently received a 'Hold' rating from MarketsMOJO on January 29, 2024. This upgrade comes after the company declared very positive results in June 2023, with a growth in net sales of 45.29%. In fact, the company has shown positive results for the last six consecutive quarters, with a growth in PAT (HY) at Rs 5.29 crore and ROCE (HY) at 12.10%.
The stock is currently in a bullish range and the technical trend has improved from mildly bullish on January 29, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock. Additionally, promoters have increased their stake in the company by 1.64% over the previous quarter, showing high confidence in the future of the business.

G G Engineering has also outperformed the market (BSE 500) with a return of 132.24% in the last year, compared to the market's return of 31.60%. However, the company's long-term fundamental strength is weak due to operating losses and a high debt to EBITDA ratio of -1.00 times. The company's return on equity (avg) is also low at 5.68%, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at a risky level compared to its average historical valuations. While it has generated a high return of 132.24% in the past year, its profits have only risen by 114.7%, resulting in a PEG ratio of 7.1. Investors should carefully consider these factors before making any investment decisions regarding G G Engineering.