Goa Carbon Receives 'Hold' Rating Amid Bullish Trend and Strong Returns

Goa Carbon, a microcap company in the carbon black industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved technically from mildly bullish to bullish on August 27, 2024. The stock is currently trading at a discount compared to its historical valuations and has generated a return of 60.05% in the past year, despite a slight decrease in profits.
One of the reasons for the 'Hold' rating is the company's consistent returns over the last three years, outperforming the BSE 500 index. However, the long-term growth of the company has been poor, with an annual growth rate of only 9.47% in operating profit over the last five years. In addition, the company has declared very negative results in June 2024, with a fall in net sales of -28.39%. The company has also reported negative results for the last two consecutive quarters, with a significant decrease in profits.

Despite being a microcap company, Goa Carbon has not attracted much interest from domestic mutual funds, with only 0% of the company's shares held by them. This could be due to their lack of comfort with the company's current price or its business. However, with a ROCE of 39.6 and a fair valuation of 2.6 Enterprise value to Capital Employed, the stock may still hold potential for investors.