Lokesh Machines Receives 'Hold' Rating from MarketsMOJO, Shows Positive Growth and Technical Strength

Lokesh Machines, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last three consecutive quarters, with a growth of 28.41% in net sales and a higher PAT of Rs 9.80 crore in the last half year.
Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on July 9, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

With a ROCE of 7.6, the company has a fair valuation and a 3.4 enterprise value to capital employed. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 130.75%, while its profits have risen by 61.8%. The PEG ratio of the company is 1, indicating a balanced growth potential.

Lokesh Machines has also shown consistent returns over the last three years, outperforming BSE 500 in each of the annual periods. However, the company has weak long-term fundamental strength with a -0.96% CAGR growth in operating profits over the last five years. It also has a high debt to EBITDA ratio of 3.39 times, indicating a low ability to service debt. The company's return on equity (avg) is 3.42%, signifying low profitability per unit of shareholders' funds.

Despite being a microcap company, domestic mutual funds hold only 0% of the company. This could be due to their capability to conduct in-depth research on companies, and their small stake may indicate that they are not comfortable with the current price or the business of Lokesh Machines.

Overall, while the stock has shown positive growth and technical indicators are bullish, it is important to consider the company's weak long-term fundamentals and low interest from domestic mutual funds before making any investment decisions. MarketsMOJO's 'Hold' rating suggests a neutral stance on the stock, and investors should carefully evaluate all factors before making any decisions.