International Conveyors Upgraded to 'Hold' by MarketsMOJO, Showing Strong Long-Term Growth Potential

International Conveyors, a microcap engineering company, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's healthy long-term growth, with an annual operating profit growth rate of 76.65%. The stock is also currently in a mildly bullish range, with technical trends improving from sideways on September 17, 2024. Factors such as MACD, Bollinger Band, and OBV are all bullish for the stock.
However, there are some concerns regarding the company's ability to service debt, as it has a high debt to EBITDA ratio of 3.06 times. Additionally, the company's return on equity (avg) is at 9.21%, indicating low profitability per unit of shareholders' funds. In the latest quarter, the company's net sales have decreased by 27.48%, with interest expenses being the highest at Rs 2.75 crore. Non-operating income is also at 94.47% of the profit before tax (PBT).

The stock is currently trading at a very expensive valuation, with a price to book value of 2.2. However, it is still at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 12.07%, while its profits have increased by 123.6%. This gives the company a PEG ratio of 0.1.

Despite being a microcap company, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the current price or the business itself. In the last year, the stock has underperformed the market, with a return of 12.07% compared to the market's (BSE 500) return of 34.98%.

Overall, while International Conveyors shows potential for long-term growth, there are some concerns regarding its debt and profitability. The stock is currently trading at a high valuation, but it has underperformed the market in the past year. Investors should carefully consider these factors before making any investment decisions.