Manaksia Coated Metals & Industries Downgraded to 'Hold' by MarketsMOJO: A Closer Look at the Company's Financial Performance and Technical Indicators

Manaksia Coated Metals & Industries, a microcap engineering company, has recently been downgraded to a 'Hold' by MarketsMOJO on October 8, 2024. This decision was based on various factors, including the company's recent financial performance and technical indicators.
In the last three quarters, Manaksia Coated Metals & Industries has reported positive results, with a growth of 106.10% in PAT (HY) and 80.7% in PBT LESS OI (Q). Its ROCE (HY) is also at its highest at 14.45%. However, the stock is currently in a mildly bullish range, with multiple technical indicators such as MACD, Bollinger Band, KST, and OBV showing bullish signals.

At a ROCE of 12.4, the company's valuation is considered attractive with an enterprise value to capital employed ratio of 2.2. Additionally, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 176.56%, while its profits have increased by 190.7%. This has resulted in a low PEG ratio of 0.2 for the company.

Manaksia Coated Metals & Industries has also shown consistent returns over the last three years, outperforming BSE 500 in each of the last three annual periods. However, the company has a high debt to EBITDA ratio of 4.16 times, indicating a low ability to service debt. This is further supported by the company's low return on equity (avg) of 5.74%, indicating low profitability per unit of shareholders' funds.

It is also worth noting that despite being a microcap company, domestic mutual funds hold only 0% of Manaksia Coated Metals & Industries. This could signify that they are either not comfortable with the current stock price or have not conducted in-depth research on the company.

In conclusion, while Manaksia Coated Metals & Industries has shown positive financial performance and technical indicators, its high debt to EBITDA ratio and low return on equity may have led to its downgrade to a 'Hold' by MarketsMOJO. Investors are advised to carefully consider these factors before making any investment decisions.