Goa Carbon Receives 'Hold' Rating from MarketsMOJO, Strong Short-Term Performance but Concerns for Long-Term Growth

Goa Carbon, a microcap company in the carbon black industry, has recently received a 'Hold' rating from MarketsMOJO on May 2, 2024. This downgrade comes after the company's positive results in December 2023, where its PBT LESS OI(Q) grew by 108.3% and PAT(Q) grew by 91.0%. Additionally, its ROCE(HY) reached a record high of 43.09%.
Technically, the stock is in a Mildly Bullish range and its MACD and KST technical factors are also Bullish. With a ROCE of 46.9, the stock is currently trading at an attractive valuation with a 3.3 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 81.83%, outperforming the BSE 500. This strong performance has also been consistent in the long term, with the stock outperforming the BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long term growth has been poor, with its operating profit growing at an annual rate of only 9.47% over the last 5 years. This could be a cause for concern for investors.

It is also worth noting that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the company's current price or its business, as domestic mutual funds have the capability to conduct in-depth research on companies.

Overall, while Goa Carbon has shown strong performance in the short term, its long term growth and lack of interest from domestic mutual funds may be a cause for caution. Investors may want to hold off on investing in this microcap company until there is more clarity on its future prospects.