Maithan Alloys Upgraded to 'Hold' by MarketsMOJO, Positive Results in September 2024

Maithan Alloys, a smallcap company in the ferro and silica manganese industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's positive results in September 2024, with a higher PAT (HY) of Rs 600.37 crore and a DEBTORS TURNOVER RATIO (HY) of 7.30 times, the highest in the industry. Additionally, the company's NET SALES (Q) have also seen a significant increase at Rs 464.22 crore.
One of the key factors contributing to this upgrade is the company's low Debt to Equity ratio (avg) of 0 times, indicating a strong financial position. With a ROE of 22.2, Maithan Alloys also has a very attractive valuation with a 0.8 Price to Book Value. Furthermore, the stock is currently trading at a fair value compared to its average historical valuations.

However, the company has shown poor long-term growth with a decline in Net Sales and a modest growth in Operating profit over the last 5 years. This has resulted in the stock being in a Mildly Bearish range, with the MACD being Bearish since 25 Nov 2024.

It is also worth noting that despite its smallcap size, domestic mutual funds hold only 0.4% of the company. This could indicate that they are either not comfortable with the current price or the business itself. Additionally, Maithan Alloys has underperformed the market (BSE 500) in the last 1 year, generating negative returns of -3.26% while the market has seen a growth of 27.32%.

Overall, while Maithan Alloys has shown positive results in the recent past, its long-term growth and underperformance in the market may be a cause for concern. Investors are advised to hold onto their positions for now and keep a close eye on the company's future performance.