Mahaveer Infoway Receives 'Hold' Rating from MarketsMOJO Based on Strong Financial Performance

Mahaveer Infoway, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on February 16, 2024. This upgrade is based on the company's positive financial results for the last three consecutive quarters. With a ROCE (HY) of 12.70%, INVENTORY TURNOVER RATIO (HY) of 8.49 times, and DEBTORS TURNOVER RATIO (HY) of 7.49 times, Mahaveer Infoway has shown strong performance in terms of profitability and efficiency.
Technically, the stock is currently in a bullish range and has shown an improvement from sideways trend on February 13, 2024. Since then, it has generated a return of 11.98%. Multiple factors such as RSI, MACD, Bollinger Band, and KST also indicate a bullish trend for the stock.

At a ROCE of 11.5, the company has a very attractive valuation with a 1.1 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 5.65% in the past year, its profits have fallen by -46%.

The majority shareholders of Mahaveer Infoway are non-institutional investors. This indicates a lack of confidence from institutional investors in the company's long-term fundamental strength. The company's net sales have shown a weak CAGR growth of -28.56% over the last 5 years, and its ability to service its debt is also weak with a poor EBIT to Interest (avg) ratio of 0.04. Additionally, the company has only been able to generate a low Return on Equity (avg) of 1.09%, indicating low profitability per unit of shareholders' funds.

In the last 1 year, Mahaveer Infoway has underperformed the market with a return of 5.65%, while the market (BSE 500) has generated a return of 32.69%. This further supports the 'Hold' rating given by MarketsMOJO. As a microcap company, Mahaveer Infoway may have potential for growth in the future, but it is important to consider its current financial performance and market trends before making any investment decisions.