Hindustan Tin Works Downgraded to 'Sell' by MarketsMOJO, Despite Recent Bullish Trend

Hindustan Tin Works, a microcap company in the packaging industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 25, 2024. This decision was based on the company's poor long-term growth, with net sales only growing at an annual rate of 4.51% and operating profit at 9.99% over the last 5 years.
In addition, the company has recently declared negative results in March 2024 after 1 consecutive positive quarters. The PAT(Q) at Rs 3.02 crore has fallen by -24.5%, while the operating profit to interest (Q) is at its lowest at 0.06 times and interest (Q) is at its highest at Rs 2.20 crore.

Technically, the stock is currently in a mildly bullish range and has shown improvement since July 18, 2024, generating a return of 11.99% since then. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are also bullish for the stock.

With a ROCE of 8.6, the stock is fairly valued with a 1.1 enterprise value to capital employed. It is also currently trading at a discount compared to its average historical valuations. However, despite generating a return of 116.00% in the past year, the company's profits have only risen by 3.3%, resulting in a PEG ratio of 4.2.

The majority shareholders of Hindustan Tin Works are non-institutional investors. The company has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. While the recent downgrade may be a cause for concern, it is important to note that the stock has shown strong performance in the past and may still have potential for growth in the future.