Hitech Corporation Receives 'Sell' Rating from MarketsMOJO, Poor Long-Term Growth and Negative Results Reported

Hitech Corporation, a microcap company in the packaging industry, has recently received a 'Sell' rating from MarketsMOJO on September 10, 2024. This downgrade is based on the company's poor long-term growth, with net sales only growing at an annual rate of 3.21% and operating profit at 12.50% over the last 5 years.
In addition, the company has also reported negative results in June 2024, with its operating cash flow at its lowest at Rs 54.57 crore and its PBT less OI (quarterly) falling by -49.6% at Rs 3.60 crore. Its PAT (quarterly) has also fallen by -37.0% at Rs 3.47 crore.

Technically, the stock is currently in a mildly bearish range, with its technical trend deteriorating from mildly bullish on September 10, 2024. Since then, the stock has generated -1.23% returns. The MACD and Bollinger Band technical factors are also bearish.

The company's performance has been below par in both the long-term and near-term, with a -5.11% return in the last year and underperformance compared to BSE 500 in the last 3 years, 1 year, and 3 months.

Other factors to consider include the company's attractive valuation with a ROCE of 13.4 and a 1.3 enterprise value to capital employed. The stock is currently trading at a discount compared to its average historical valuations. However, its profits have fallen by -33.3% in the past year, despite a -5.11% return for shareholders.

It is worth noting that the majority shareholders of Hitech Corporation are its promoters. As a microcap company in the packaging industry, investors should carefully consider the company's performance and future prospects before making any investment decisions.