Goa Carbon Receives 'Hold' Rating from MarketsMOJO, Despite Recent Decline in Profits

Goa Carbon, a microcap company in the carbon black industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical factors, including the stock's bullish trend and positive MACD and KST indicators.
The company's ROCE of 39.6% indicates a fair valuation with a 2.6 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its historical valuations. However, despite generating a return of 60.56% in the past year, the company's profits have declined by -3.8%.

Goa Carbon has consistently outperformed the BSE 500 index in the last 3 annual periods, but its long-term growth has been poor with an annual operating profit growth rate of only 9.47% over the last 5 years.

In the latest quarter, the company reported very negative results with a -28.39% fall in net sales. The company has also declared negative results for the last 2 consecutive quarters, with a significant decline in PAT and operating profit to interest ratio.

It is worth noting that despite being a microcap company, domestic mutual funds hold only 0% of Goa Carbon's shares. This could indicate that they are either not comfortable with the current price or have concerns about the company's business.

Overall, while Goa Carbon has shown strong returns in the past year, its long-term growth and recent negative results may be a cause for concern. Investors may want to hold off on investing in this microcap company until there is more positive news and growth potential.