Hittco Tools Receives 'Hold' Rating from MarketsMOJO, Technical Indicators Point to Bullish Trend

Hittco Tools, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical indicators, such as MACD, Bollinger Band, and KST, which all point towards a bullish trend for the stock.
One of the main reasons for the 'Hold' rating is the stock's attractive valuation, with a ROCE of 5.5 and an enterprise value to capital employed ratio of 1.7. Additionally, the stock is currently trading at a discount compared to its historical valuations.

However, it is important to note that the company has experienced a decline in profits by -54% over the past year, despite generating a return of 31.50%. This could be a cause for concern for potential investors.

Furthermore, Hittco Tools has a weak long-term fundamental strength, with operating losses and a low ability to service debt due to a high debt to EBITDA ratio of 3.10 times. The company has also shown poor long-term growth, with net sales growing at an annual rate of -3.70% and operating profit at 17.92% over the last 5 years.

In terms of shareholders, the majority are non-institutional investors. The company's recent financial results for June 2024 also showed flat results, with the lowest ROCE (HY) at 5.90%, PBDIT (Q) at Rs -0.14 crore, and PBT LESS OI (Q) at Rs -0.35 crore.

Overall, while the technical indicators suggest a bullish trend for Hittco Tools, the company's financial performance and weak long-term fundamentals may be a cause for caution for potential investors.