Manaksia Aluminium Company Receives 'Hold' Rating Amid Positive Outlook and Attractive Valuation

Manaksia Aluminium Company, a microcap company in the non-ferrous metal industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved from a mildly bullish status on July 23, 2024. The technical indicators such as MACD, Bollinger Band, and KST all point towards a positive outlook for the stock.
One of the main reasons for the 'Hold' rating is the attractive valuation of the company, with a ROCE of 8.5 and an enterprise value to capital employed ratio of 1.3. Additionally, the stock is currently trading at a discount compared to its historical valuations. However, it is important to note that while the stock has generated a return of 20.05% in the past year, its profits have declined by -26.8%.

The majority shareholders of Manaksia Aluminium Company are the promoters, indicating their confidence in the company's future prospects. However, the company has weak long-term fundamental strength, with an average ROCE of 6.14% and poor growth in net sales over the last 5 years. Furthermore, the company has a high debt to EBITDA ratio of 5.42 times, indicating a low ability to service debt.

In the last quarter of 2024, the company's results were flat, and its interest expenses have grown at a rate of 20.03%. In the past year, the stock has underperformed the market, generating a return of 20.05% compared to the market's (BSE 500) return of 34.69%. Overall, while the stock may have potential for growth, it is currently recommended to hold onto it and monitor its performance closely.