Greenlam Industries Receives 'Hold' Rating from MarketsMOJO, Shows Stable Financial Position

Greenlam Industries, a midcap company in the miscellaneous industry, has recently received a 'Hold' rating from MarketsMOJO on August 12, 2024. This upgrade comes as the company has shown a low Debt to Equity ratio of 0.47 times, indicating a stable financial position.
Technically, the stock is in a Mildly Bullish range and has multiple bullish factors such as MACD, Bollinger Band, and KST. Additionally, with a ROCE of 10.3 and an attractive valuation of 4.1 Enterprise value to Capital Employed, the stock is trading at a discount compared to its historical valuations.

However, despite a positive return of 27.01% in the past year, the company's profits have fallen by -8.5%. The majority shareholders of Greenlam Industries are the promoters.

On the downside, the company has shown poor long-term growth with Net Sales growing at an annual rate of 13.32% and Operating profit at 11.27% over the last 5 years. In the last 3 consecutive quarters, the company has declared negative results. The interest has grown at a high rate of 80.08% at Rs 41.49 crore, while the PAT has fallen by -38.8% at Rs 20.27 crore. The ROCE for the half-yearly period is also at its lowest at 10.48%.

Overall, while Greenlam Industries may have some positive aspects, it is important to consider the company's poor long-term growth and recent negative results before making any investment decisions.