Malu Paper Mills Receives Upgraded Stock Call from MarketsMOJO, Shows Strong Performance in First Half of 2024

Malu Paper Mills, a microcap company in the paper and paper products industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on August 9, 2024.
The company has shown positive results in the first half of 2024, with a higher profit after tax of Rs 0.46 crore and a record high return on capital employed (ROCE) of 8.96%. In addition, its net sales for the quarter were also at a record high of Rs 75.39 crore.

Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on August 7, 2024. The MACD and KST technical factors also indicate a bullish trend.

With an ROCE of 9.1, the company has an attractive valuation with a 1.5 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 44.78%, while its profits have increased by 108.5%. The PEG ratio of the company is 0.7.

The majority shareholders of Malu Paper Mills are the promoters, indicating their confidence in the company's performance.

However, the company does have a high debt-to-equity ratio of 19 times, which is a weak long-term fundamental strength. Its net sales have also shown poor growth at an annual rate of -0.01% and operating profit at 0% over the last 5 years. The average debt-to-equity ratio is also at 0 times, indicating a high level of debt for the company.

Despite these challenges, Malu Paper Mills has outperformed the market (BSE 500) with a return of 44.78% in the last year, compared to the market's return of 34.26%. Investors should carefully consider these factors before making any investment decisions.