Hitech Corporation Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Promoter Confidence Boost Stock

Hitech Corporation, a microcap company in the packaging industry, has recently received a 'Hold' rating from MarketsMOJO on September 16, 2024. This upgrade is based on technical analysis, with the stock currently in a Mildly Bullish range. The technical trend has improved from Sideways on September 12, 2024, and has generated a return of -1.83% since then. Additionally, the Bollinger Band, a key technical factor, has been Bullish since September 12, 2024.
One of the main reasons for the 'Hold' rating is the company's attractive valuation, with a ROCE of 13.4 and a 1.4 Enterprise value to Capital Employed. The stock is also trading at a discount compared to its average historical valuations. However, over the past year, the stock has only generated a return of 0.81%, while its profits have fallen by -33.3%.

The majority shareholders of Hitech Corporation are the promoters, indicating their confidence in the company. However, the company has shown poor long-term growth, with Net Sales growing at an annual rate of 3.21% and Operating profit at 12.50% over the last 5 years. In the latest quarter, the company reported negative results, with the lowest OPERATING CF(Y) at Rs 54.57 Cr and a significant decrease in PBT LESS OI(Q) and PAT(Q) at -49.6% and -37.0%, respectively.

In the last year, Hitech Corporation has underperformed the market, with a return of only 0.81%, compared to the market (BSE 500) returns of 34.97%. While the company's stock may not be a strong buy at the moment, it may be worth keeping an eye on for potential future growth.