Intrasoft Technologies upgraded to 'Hold' by MarketsMOJO based on technical trends and financial performance

Intrasoft Technologies, a microcap company in the BPO/ITeS industry, has recently been upgraded to a 'Hold' by MarketsMOJO on July 8, 2024. This upgrade is based on technical trends, valuation, and financial performance.
The technical trend for Intrasoft Technologies is currently sideways, indicating no clear price momentum. This trend has deteriorated from mildly bullish on July 8, 2024, and has resulted in a -1.19% return since then. However, the company's ROCE (Return on Capital Employed) is at a very attractive 6.8%, and it is trading at a discount compared to its average historical valuations.

In the past year, Intrasoft Technologies has generated a return of -2.91%, but its profits have increased by 16.5%. This has resulted in a PEG ratio of 4.2, indicating that the stock may be undervalued. However, the company's promoter holding has decreased this quarter and now stands at 43.06% of the company, which may be a cause for concern.

Intrasoft Technologies also has a high debt to EBITDA ratio of 3.37 times, indicating a low ability to service debt. Additionally, the company has been able to generate a low Return on Equity (avg) of 5.04%, signifying low profitability per unit of shareholders' funds.

The company's performance in the last quarter has been flat, with the highest interest expense of Rs 3.16 crore and non-operating income accounting for 63.22% of the profit before tax. The EPS (Earnings Per Share) for the quarter was the lowest at Rs 1.45.

In the long term, Intrasoft Technologies has underperformed the BSE 500 index, generating -2.91% returns in the last year and underperforming in the last 3 years, 1 year, and 3 months. Based on these factors, MarketsMOJO has upgraded the stock to a 'Hold' recommendation.