MarketsMOJO Upgrades Advik Capital to 'Hold' Rating for Strong Long-Term Growth and Attractive Valuation

Advik Capital, a microcap company in the electric equipment industry, has recently received a 'Hold' rating from MarketsMOJO on April 5, 2024. This upgrade is based on the company's healthy long-term growth, with net sales growing at an annual rate of 166.78% and operating profit at 43.77%.
Technically, the stock is currently in a mildly bullish range and has shown a positive trend since April 4, 2024, with a return of 4.95%. The Bollinger Band, a key technical factor, has also been bullish since April 4, 2024.

Attractive valuation is another factor contributing to the 'Hold' rating, with a ROCE of 0.7 and an enterprise value to capital employed ratio of 1.7. The stock is currently trading at a discount compared to its average historical valuations. However, over the past year, the stock has generated a negative return of -2.45%, while its profits have fallen by -45.3%.

Majority shareholders of Advik Capital are non-institutional investors, and the company has shown poor management efficiency with a low ROCE of 5.15%. This indicates low profitability per unit of total capital.

In December 2023, the company's results were flat, with PBT LESS OI(Q) at Rs 1.18 crore, a decrease of -75.47%, and PAT(Q) at Rs 0.46 crore, a decrease of -87.5%.

In the last year, Advik Capital has underperformed the market, with the BSE 500 generating returns of 39.86%, while the stock has generated negative returns of -2.45%. Despite this, MarketsMOJO has upgraded the stock to 'Hold' based on its potential for long-term growth and attractive valuation.