MarketsMOJO rates Inspirisys Solutions as 'Hold' with multiple bullish indicators

Inspirisys Solutions, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on November 11, 2024. The stock is currently in a Mildly Bullish range and has shown multiple bullish indicators such as MACD, Bollinger Band, and KST.
One of the main reasons for the 'Hold' rating is the company's attractive valuation with a ROCE of 39.7 and an Enterprise value to Capital Employed ratio of 9. The stock is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 52.46%, while its profits have increased by 458.3%. The PEG ratio of the company is also at a low 0.1.

The majority shareholders of Inspirisys Solutions are the promoters, which is a positive sign for investors. The stock has outperformed the market (BSE 500) with a return of 52.46% in the last year.

However, the company has a high debt to equity ratio (avg) of 0 times, which may be a concern for some investors. The long-term growth of the company has also been poor, with net sales growing at an annual rate of -0.66% and operating profit at 11.04% over the last 5 years. The Return on Equity (avg) is also low at 8.39%, indicating low profitability per unit of shareholders' funds.

In the latest quarter, the company's results have been flat with a significant decrease in PBT LESS OI(Q) at Rs 2.54 crore, a decrease of -80.57%. The OPERATING PROFIT TO INTEREST (Q) is also at its lowest at 2.28 times. The PAT(Q) has also fallen by -12.7% at Rs 3.77 crore.

Overall, while Inspirisys Solutions has shown a strong market-beating performance in the past year, its high debt and poor long-term growth may be a cause for concern. Investors are advised to hold onto their stocks for now and keep an eye on the company's future performance.