Kabra Extrusion Technik Upgraded to 'Hold' by MarketsMOJO, Showing Strong Financial Position and Long-Term Growth.

Kabra Extrusion Technik, a smallcap company in the engineering industry, has recently been upgraded to a 'Hold' by MarketsMOJO on September 13, 2024. This upgrade comes as the company has shown a low Debt to Equity ratio of 0.01 times, indicating a strong financial position. Additionally, the company has also displayed a healthy long-term growth with an annual operating profit growth rate of 45.67%.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on September 13, 2024. This is supported by factors such as MACD, Bollinger Band, and OBV. With a ROE of 7.5 and a fair valuation of 3.7 Price to Book Value, the stock is trading at a fair value compared to its historical valuations.

However, the company has faced some challenges in the past year, with a return of only 0.71% and a decline in profits by -23.2%. In fact, the company declared negative results in June 2024 after flat results in March 2024. The PAT(Q) has fallen by -65.2% and the DPR(Y) is at its lowest at 31.03%. The ROCE(HY) is also at its lowest at 10.07%.

Despite being a smallcap company, domestic mutual funds hold only 0.03% of the company. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

In the last year, Kabra Extrusion Technik has underperformed the market, with a return of only 0.71% compared to the market (BSE 500) returns of 35.91%. While the company has shown potential for growth, it is important to consider the challenges it has faced in the past year before making any investment decisions.