Hittco Tools Receives 'Hold' Rating from MarketsMOJO Amidst Bullish Trend and Attractive Valuations

Hittco Tools, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved technically from mildly bullish to bullish on January 29, 2024.
The stock has multiple bullish factors such as MACD, Bollinger Band, and KST. Additionally, with a ROCE of 8.2, the stock is currently trading at an attractive valuation with a 1.6 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

However, the company has faced challenges in the past year with a decline in profits by -74.8%. The majority shareholders of Hittco Tools are non-institutional investors.

The company also has weak long-term fundamental strength with an average ROCE of 5.10%. Its net sales have grown at a rate of -0.24% and operating profit at 17.92% over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 3.10 times, indicating a low ability to service debt.

In the last quarter, the company's results were flat with the lowest EPS of Rs 0.03. It has also underperformed the market in the last year with a return of only 4.27%, compared to the market's return of 31.60%.

Overall, while Hittco Tools has shown a bullish trend and has attractive valuations, it also has weak long-term fundamentals and has underperformed the market. Therefore, MarketsMOJO has upgraded its rating to 'Hold' for now.