Johnson Controls-Hitachi Air Condition. India Upgraded to 'Hold' Rating After Positive Results

Johnson Controls-Hitachi Air Condition. India, a smallcap company in the air conditioning industry, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This upgrade comes after the company declared very positive results in March 2024, with a growth in operating profit of 228.58%. The company also achieved its highest net sales and operating profit to net sales in the quarter.
Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on 28th May 2024. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are also indicating a bullish trend for the stock.

In terms of performance, Johnson Controls-Hitachi Air Condition. India has outperformed the market (BSE 500) with a return of 59.68% in the last year, compared to the market's return of 35.33%.

However, the company's long-term fundamental strength is weak, with a -202.22% CAGR growth in operating profits over the last 5 years. This indicates a low profitability per unit of shareholders' funds. Additionally, the stock is trading at a risky level compared to its average historical valuations.

Furthermore, the company's profits have only risen by 25.9% in the past year, despite the stock generating a return of 59.68%. This could be a cause for concern for investors.

Another factor to consider is that 32.32% of promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets.

Overall, while Johnson Controls-Hitachi Air Condition. India has shown strong performance in the short term, its long-term fundamentals and high promoter pledged shares make it a risky investment. Investors may want to hold off on buying or selling this stock until there is more stability in its performance.