Intrasoft Technologies Upgraded to 'Hold' by MarketsMOJO, Attractive Valuation but Concerns Remain

Intrasoft Technologies, a microcap company in the BPO/ITeS industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This upgrade is based on the company's technical trend, which has improved from Mildly Bearish to Sideways, indicating no clear price momentum. Since the upgrade on July 24, 2024, the stock has generated a return of 8.18%.
One of the reasons for the 'Hold' rating is the company's attractive valuation. With a ROCE of 6.8 and an Enterprise value to Capital Employed ratio of 1, Intrasoft Technologies is trading at a discount compared to its average historical valuations. Additionally, while the stock has generated a return of -2.14% in the past year, its profits have increased by 16.5%. However, the PEG ratio of the company is 4.2, indicating a potential overvaluation.

On the downside, the company has a high Debt to EBITDA ratio of 3.37 times, indicating a low ability to service debt. This quarter, the promoter holding has decreased to 43.06% of the company, which may be a cause for concern.

In terms of performance, Intrasoft Technologies has been underperforming in both the long term and near term. Along with generating -2.14% returns in the last year, the stock has also underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. The company's results for March 2024 were flat, with the highest interest expense and the lowest EPS in the quarter.

Overall, while Intrasoft Technologies may have some attractive valuation metrics, its recent performance and high debt levels may be a cause for concern. Investors are advised to hold onto their positions for now and monitor the company's future performance closely.