Manomay Tex India Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Institutional Interest

Manomay Tex India, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on November 14, 2024. This upgrade is based on the company's positive financial results in September 2024, with a growth of 82.78% in PBT LESS OI(Q) at Rs 6.05 crore, the highest PBDIT(Q) at Rs 23.18 crore, and a growth of 78.1% in PAT(Q) at Rs 4.79 crore.
However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The trend has also deteriorated from Mildly Bullish on November 12, 2024, resulting in a -2.85% return since then. Despite this, the company has an attractive valuation with a ROCE of 8.3 and a 1.5 Enterprise value to Capital Employed.

Institutional investors have also shown an increasing interest in Manomay Tex India, with a 1.74% increase in their stake over the previous quarter. These investors have better resources and capabilities to analyze the fundamentals of companies, making their participation a positive sign for the company.

Over the last 3 years, Manomay Tex India has consistently generated returns, outperforming BSE 500 in each of the last 3 annual periods. However, the company's ability to service debt is a concern, with a high Debt to EBITDA ratio of 4.34 times. Additionally, the company has shown poor long-term growth, with a 9.10% annual growth in Net Sales and 16.51% in Operating profit over the last 5 years.

Overall, while Manomay Tex India has shown positive financial results and consistent returns, its technical trend and high debt levels may be a cause for concern. Investors are advised to hold their position and monitor the company's performance closely.