Igarashi Motors India Upgraded to 'Hold' by MarketsMOJO, Positive Outlook for Auto Ancillary Company

Igarashi Motors India, a smallcap company in the auto ancillary industry, has recently been upgraded to a 'Hold' by MarketsMOJO on July 16, 2024. This upgrade is based on several factors that indicate a positive outlook for the company.
One of the main reasons for the 'Hold' rating is the company's strong ability to service its debt. With a low Debt to EBITDA ratio of 1.10 times, Igarashi Motors India is in a good position to manage its debt obligations.

Technically, the stock is currently in a Mildly Bullish range, with the technical trend improving from Sideways on July 16, 2024. This is supported by multiple bullish factors such as MACD, Bollinger Band, KST, and OBV.

In terms of valuation, the company has a fair valuation with a ROCE of 4.3 and an Enterprise value to Capital Employed ratio of 3.1. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

While the stock has generated a return of 10.06% in the past year, its profits have risen by 83%, resulting in a PEG ratio of 2. This indicates that the stock has potential for future growth.

However, there are some concerns regarding the company's long-term growth. Operating profit has seen a decline of -27.01% over the last 5 years, indicating poor growth.

In the latest financial results for March 2024, the company's PAT has grown at a rate of -25.31%, with the DEBT-EQUITY RATIO at its highest at 0.31 times and CASH AND CASH EQUIVALENTS at its lowest at Rs 4.56 crore.

Despite these concerns, Igarashi Motors India has underperformed the market in the last year, generating a return of 10.06% compared to the market's (BSE 500) returns of 37.74%.

Overall, while the company has some positive factors, it also has some areas of concern. Investors may want to hold onto their positions for now and monitor the company's performance in the future.