Macfos Receives 'Hold' Rating from MarketsMOJO, Showing Strong Debt Management and Market-Beating Performance

Macfos, a microcap retailing company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, healthy long-term growth, and market-beating performance.
One of the key factors contributing to the 'Hold' rating is Macfos' low Debt to EBITDA ratio of 0.90 times, indicating a strong ability to manage its debt. Additionally, the company has shown consistent growth in its Net Sales and Operating profit, with annual rates of 66.50% and 83.41%, respectively.

From a technical standpoint, the stock is currently in a Mildly Bullish range and has shown improvement from a Sideways trend on 24-Oct-24. Another positive technical factor is that the DOW has been Bullish since 24 Oct 2024.

In terms of performance, Macfos has outperformed the market (BSE 500) with a return of 133.24% in the last year, compared to the market's return of 34.46%. However, the company's results for Jun 24 were flat.

With a ROCE of 42.8, Macfos has a Very Expensive valuation with an Enterprise value to Capital Employed ratio of 21.8. This may be a concern for some investors, as the company's profits have only risen by 47% in the past year, resulting in a PEG ratio of 1.8.

It is worth noting that despite its size, domestic mutual funds hold only 0% of Macfos' shares. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while Macfos has shown strong performance and growth potential, its valuation and lack of interest from domestic mutual funds may be a cause for concern. Investors are advised to carefully consider these factors before making any investment decisions.