Machino Plastics Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Recent Quarters

Machino Plastics, a microcap company in the auto ancillary industry, has recently received a 'Hold' rating from MarketsMOJO on October 14, 2024. This upgrade comes as the company has shown positive results for the last three consecutive quarters, with its net sales reaching a high of Rs 95.16 crore and PBDIT at Rs 7.58 crore. Additionally, its PBT LESS OI has also reached a high of Rs 2.33 crore.
Technically, the stock is in a mildly bullish range and has shown improvement from a sideways trend on October 14, 2024. The MACD and KST technical factors are also bullish, indicating a positive outlook for the stock.

With a ROCE of 8.3, Machino Plastics has a very attractive valuation with a 1.7 enterprise value to capital employed. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 41.48%, while its profits have increased by 224.8%. The PEG ratio of the company is 0.2, indicating a potential undervaluation.

The majority shareholders of Machino Plastics are its promoters, which can be seen as a positive sign for investors. The company has also consistently generated returns over the last three years, outperforming the BSE 500 index.

However, there are some weak points to consider. The company has a weak long-term fundamental strength with a 53.08% CAGR growth in operating profits over the last five years. It also has a high debt to EBITDA ratio of 4.71 times, indicating a low ability to service debt. The return on equity (average) is also low at 1.98%, signifying low profitability per unit of shareholders' funds.

Overall, while Machino Plastics has shown positive results and has a bullish technical outlook, it also has some weak fundamental factors to consider. Investors may want to hold onto their stocks for now and monitor the company's performance in the future.