Integra Engineering India: Strong Growth, Hold Rating

Integra Engineering India, a microcap company in the textile machinery industry, has recently been downgraded to a 'Hold' by MarketsMOJO on October 16, 2023. This decision was based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.25 times.
In addition, Integra Engineering India has shown positive results for the last 5 consecutive quarters, with a growth of 77.67% in PAT (HY), 20.58% in NET SALES (HY), and a highest ROCE (HY) of 26.85%. These factors have contributed to the stock's technical range being classified as Mildly Bullish, with both MACD and KST technical factors also being Bullish.

The stock has also outperformed the market (BSE 500) with a return of 212.82% in the last year, compared to the market's return of 16.72%. However, with a ROCE of 28.6, the stock is currently trading at a Very Expensive valuation, with an Enterprise value to Capital Employed ratio of 11.5.

Interestingly, the stock is currently trading at a discount compared to its average historical valuations. Despite its strong performance, domestic mutual funds hold only 0.53% of the company, which could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while Integra Engineering India has shown promising growth and financial stability, the current valuation and lack of interest from domestic mutual funds may warrant a 'Hold' recommendation for investors.