Lakshmi Electrical Control Systems Receives 'Hold' Rating from MarketsMOJO Based on Strong Debt to Equity Ratio and Bullish Technical Trend

Lakshmi Electrical Control Systems, a microcap company in the capital goods industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times. Additionally, the stock is currently in a Bullish range and the technical trend has improved from Mildly Bullish on 29-Apr-24. Multiple factors such as MACD, Bollinger Band, and KST also indicate a bullish outlook for the stock.
The majority shareholders of Lakshmi Electrical Control Systems are non-institutional investors. The company has consistently generated positive returns over the last 3 years, outperforming the BSE 500 index. However, the management efficiency of the company is poor, with a low Return on Equity (ROE) of 5.07%. This indicates low profitability per unit of shareholders' funds.

In terms of long-term growth, the company has shown slow progress with a 5-year annual growth rate of 11.90% in Net Sales and 12.87% in Operating profit. In the last quarter of Dec 23, the company reported negative results with a fall in PAT(Q) at Rs 1.92 crore and NET SALES(Q) at Rs 81.23 crore. The PBDIT(Q) was also at its lowest at Rs 2.40 crore.

With an ROE of 5.9, Lakshmi Electrical Control Systems has an expensive valuation with a 1.7 Price to Book Value. This indicates that the stock is trading at a premium compared to its average historical valuations. While the stock has generated a return of 88.11% in the past year, its profits have fallen by -24.2%. Investors are advised to hold their positions in the stock for now.