Hindustan Tin Works Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth and Institutional Investor Decrease

Hindustan Tin Works, a microcap company in the packaging industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 13, 2024. This decision was based on several factors, including poor long-term growth, negative results in the most recent quarter, and a decrease in institutional investor participation.
Over the last five years, Hindustan Tin Works has only seen a 4.37% annual growth in net sales and a 9.99% growth in operating profit. In the most recent quarter, the company's PBT LESS OI(Q) has fallen by -82.81% and PAT(Q) has fallen by -27.1%. Additionally, the company's interest expenses have grown by 33.44%.

Institutional investors, who have better resources and capabilities to analyze company fundamentals, have also decreased their stake in Hindustan Tin Works by -0.72% in the previous quarter. Currently, they hold 8.19% of the company.

Furthermore, the stock has underperformed the market in the last year, generating a return of only 10.31% compared to the market's return of 26.05% (BSE 500). The technical trend for the stock is also sideways, indicating no clear price momentum.

However, there are some positive aspects to consider. Hindustan Tin Works has a very attractive valuation with a ROCE of 8.4 and an enterprise value to capital employed ratio of 0.9. The stock is also trading at a discount compared to its historical valuations. In the past year, while the stock has generated a return of 10.31%, its profits have risen by 13.2%, resulting in a PEG ratio of 0.9.

In conclusion, Hindustan Tin Works may not be a favorable investment option at the moment, as indicated by the recent downgrade to 'Sell' by MarketsMOJO. However, investors should keep an eye on the company's future performance and any potential changes in its fundamentals.