Hi-Tech Gears Receives 'Hold' Rating from MarketsMOJO, Reports Positive Results and Attractive Valuation

The Hi-Tech Gears, a smallcap company in the auto ancillary industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in March 2024, with its ROCE (HY) reaching a high of 12.91% and its debt-equity ratio (HY) at a low of 0.64 times. Additionally, the company's operating profit to interest (Q) is also at a high of 6.10 times.
Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV indicating a bullish trend. The company also has an attractive valuation with a ROCE of 12.5 and a 3 Enterprise value to Capital Employed. Furthermore, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, The Hi-Tech Gears has generated a return of 166.56%, while its profits have risen by 110.1%. This has resulted in a low PEG ratio of 0.4, indicating a market-beating performance in both the long term and near term. The stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company does have some weak long-term fundamental strengths, with a -4.49% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 3.41 times, indicating a low ability to service debt. The company's return on equity (avg) is also at a low of 6.32%, signifying low profitability per unit of shareholders' funds.

It is worth noting that despite its smallcap size, domestic mutual funds hold only 0% of the company. This could be due to their capability to conduct in-depth on-the-ground research on companies, and their small stake may signify either their discomfort with the price or the business. Overall, The Hi-Tech Gears shows potential for growth, but investors should carefully consider all factors before making any investment decisions.