Jamna Auto Industries Upgraded to 'Hold' by MarketsMOJO, Despite Poor Long Term Growth

Jamna Auto Industries, a smallcap company in the auto ancillary industry, has recently been upgraded to a 'Hold' by MarketsMOJO on October 21, 2024. This upgrade is based on the company's high management efficiency, with a ROE of 18.17%, and its strong ability to service debt, with a low Debt to EBITDA ratio of 0.52 times. Additionally, the company has an attractive valuation with a Price to Book Value of 5, although it is currently trading at a premium compared to its historical valuations.
Despite a return of -2.77% in the past year, Jamna Auto Industries has seen a rise in profits by 16.8%. However, its long term growth has been poor, with a slow annual growth rate of 3.81% in Net Sales and 2.98% in Operating profit over the last 5 years. The company also reported flat results in June 2024, with the lowest NET SALES(Q) at Rs 557.14 crore.

Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since October 14, 2024, resulting in -2.19% returns. Multiple factors, such as MACD, Bollinger Band, and KST, are currently bearish for the stock.

Institutional investors have also decreased their stake in Jamna Auto Industries by -4.55% in the previous quarter, holding only 10.68% of the company. This indicates that these investors, who have better resources and capabilities to analyze company fundamentals, have a lack of confidence in the company's performance.

Overall, Jamna Auto Industries has underperformed the BSE 500 in the last 3 years, 1 year, and 3 months, with a return of -2.77%. While the company has shown some positive aspects, such as high management efficiency and strong debt-servicing ability, its poor long term growth and declining institutional investor interest make it a 'Hold' for now.