Linc Receives 'Hold' Rating from MarketsMOJO, Despite Positive Factors and Attractive Valuation

Linc, a microcap company in the printing and stationery industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on several factors, including the company's strong ability to service debt with a low Debt to EBITDA ratio of 0.87 times.
Technically, the stock is currently in a Mildly Bullish range, with the trend improving from Mildly Bearish on 05-Jul-24. Additionally, multiple indicators such as Bollinger Band, KST, and OBV are showing a Bullish trend.

Attractive valuation is another reason for the 'Hold' rating, with a Price to Book Value of 5.2 and a ROE of 19.3. However, the stock is currently trading at a fair value compared to its historical valuations.

Despite these positive aspects, there are some concerns about Linc's management efficiency, with a low ROE of 9.08%. This indicates low profitability per unit of shareholders' funds. Furthermore, the company has shown poor long-term growth, with Net Sales growing at an annual rate of only 6.46% over the last 5 years.

In the latest quarter, Linc's results have been flat, with PBT LESS OI(Q) at Rs 12.45 crore falling by -20.55% and PAT(Q) at Rs 11.45 crore falling by -7.1%.

It is also worth noting that despite its size, domestic mutual funds hold only 0% of the company. This could suggest that they are not comfortable with the stock's current price or the business itself.

In the last year, Linc has underperformed the market, with negative returns of -12.76% compared to the market's returns of 37.85% (BSE 500). This could be a cause for concern for potential investors.

Overall, while Linc has some positive aspects, there are also some concerns that have led to the 'Hold' rating from MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding the stock.