GP Petroleums Upgraded to 'Buy' by MarketsMOJO, Showing Strong Performance and Attractive Valuations

GP Petroleums, a microcap company in the lubricants industry, has recently caught the attention of investors with its upgraded stock call to 'Buy' by MarketsMOJO on July 2, 2024. This positive news comes after the company's strong performance in the first quarter of 2024, with a PAT (HY) of Rs 13.56 crore, showing a growth of 75.19%.
One of the main reasons for the upgraded stock call is the company's strong ability to service its debt, with a low Debt to EBITDA ratio of 1.50 times. This indicates a stable financial position and a positive outlook for the company.

In addition, the stock is currently in a bullish range, with technical indicators such as MACD, Bollinger Band, and KST all pointing towards a positive trend. The stock is also trading at a discount compared to its historical valuations, making it a very attractive investment opportunity with a price to book value of 1.2.

Moreover, GP Petroleums has a majority of its shares owned by promoters, indicating their confidence in the company's growth potential. And the stock has outperformed the market (BSE 500) with a return of 83.92% in the last year, showcasing its market-beating performance.

However, there are some risks to consider, such as the company's poor long-term growth with a low annual growth rate of 1.55% in net sales and 2.87% in operating profit over the last 5 years. But with a PEG ratio of 1.3, the company's profits are still growing at a reasonable rate.

In conclusion, GP Petroleums is a promising microcap company in the lubricants industry with a strong financial position, positive technical indicators, and attractive valuations. With the majority of shares owned by promoters and a market-beating performance, it is definitely a stock to consider for investors looking for potential growth opportunities.