Likhitha Infrastructure Receives 'Hold' Rating, Shows Strong Financials and Bullish Technical Indicators

Likhitha Infrastructure, a smallcap 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, indicating a healthy financial position. Additionally, the company has shown consistent growth in Net Sales and Operating profit, with an annual rate of 33.62% and 48.61%, respectively.
Technically, the stock is in a Mildly Bullish range and has shown improvement from a Sideways trend on 30-Apr-24. Multiple factors such as MACD, Bollinger Band, DOW, and OBV are also bullish for the stock.

However, the company's results for Dec 23 were flat, with the ROCE (HY) and INVENTORY TURNOVER RATIO (HY) at their lowest levels. The stock also has an expensive valuation with a Price to Book Value of 5 and is currently trading at a discount compared to its historical valuations.

In the past year, the stock has generated a return of 23.40%, while its profits have only risen by 10.6%. This has resulted in a PEG ratio of 2, indicating that the stock may be overvalued. It is worth noting that despite its small size, domestic mutual funds hold only 0% of the company, which could suggest that they are not comfortable with the current price or the business.

Furthermore, Likhitha Infrastructure has underperformed the market in the last 1 year, with a return of 23.40% compared to the market's (BSE 500) return of 36.90%. Investors should carefully consider these factors before making any investment decisions regarding this smallcap company in the capital goods industry.