MarketsMOJO Upgrades Aplab's Stock Call to 'Hold' Based on Technical Factors and Attractive Valuation

MarketsMOJO has recently upgraded its stock call on Aplab, a microcap company in the electronics components industry, to 'Hold'. This upgrade is based on technical factors, with the stock currently in a Mildly Bullish range and its MACD and KST indicators also showing a Bullish trend.
In addition, Aplab has an attractive valuation with a ROCE of 29.1 and a 3.6 Enterprise value to Capital Employed. The stock is also trading at a discount compared to its historical valuations. Despite generating a return of 195.23% in the past year, the company's profits have risen by 565%, resulting in a PEG ratio of 0.

The majority shareholders of Aplab are its promoters, indicating their confidence in the company. Aplab has also consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index.

However, Aplab does have some weak points in its long-term fundamentals. Its average ROCE is 0%, indicating poor long-term growth. Net sales have also declined by an annual rate of -3.17% and operating profit by 47.60% over the last 5 years. Additionally, the company has a high debt-to-equity ratio of 0 times.

In the latest quarter, Aplab's results were flat with PBDIT(Q) at Rs 0.50 cr and OPERATING PROFIT TO NET SALES (Q) at its lowest at 4.19%. Despite these weaknesses, MarketsMOJO has upgraded Aplab's stock call to 'Hold' based on its current technical factors and attractive valuation.