Mallcom (India) Upgraded to 'Hold' Rating by MarketsMOJO, Shows Strong Debt Servicing Ability

Mallcom (India) has recently been upgraded to a 'Hold' rating by MarketsMOJO, a leading stock analysis platform. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.53 times. The stock is also currently in a Mildly Bullish range, with technical factors such as MACD and Bollinger Band also showing a Bullish trend.
In terms of performance, Mallcom (India) has been beating the market in both the long term and near term. In the last 1 year, the stock has generated a return of 48.56%, outperforming the BSE 500 index. It has also outperformed the market in the last 3 years, 1 year, and 3 months.

However, the company's long term growth has been poor, with Net Sales growing at an annual rate of 7.66% and Operating profit at 18.13% over the last 5 years. In the recent quarter, the company's results were flat, with its ROCE (HY) and DPR (Y) at their lowest levels and DEBTORS TURNOVER RATIO (HY) also at a low of 6.02 times.

With a ROCE of 16.3, Mallcom (India) currently has a Very Expensive valuation, with a 3.2 Enterprise value to Capital Employed. However, the stock is trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 48.56%, its profits have fallen by -1.8%.

It is worth noting that despite its small size, domestic mutual funds hold only 0% of the company. This could signify that they are either not comfortable with the current price or the business itself. However, domestic mutual funds have the capability to conduct in-depth research on companies, so their small stake may also indicate potential for future growth.

Overall, Mallcom (India) has shown promising signs with its upgraded 'Hold' rating and strong ability to service debt. However, its poor long term growth and expensive valuation should also be considered by investors.