MarketsMOJO Upgrades Artson Engineering to 'Hold' Based on Positive Financial Results and Technical Indicators

MarketsMOJO has recently upgraded its stock call on Artson Engineering to 'Hold' based on the company's positive financial results and bullish technical indicators. The company has shown consistent growth in the last three quarters, with a higher PAT and ROCE. The stock is currently in a bullish range and has shown improvement in technical trends.
In terms of market performance, Artson Engineering has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of 192.10% in the last year alone. However, the company's high debt-to-equity ratio of 63.55 times indicates a weak long-term fundamental strength. Additionally, the company has shown poor long-term growth with a negative annual growth rate of -4.11% in net sales over the last 5 years.

Despite its high debt, Artson Engineering has a very expensive valuation with a ROCE of 18.6 and an enterprise value to capital employed ratio of 11.9. However, the stock is currently trading at a discount compared to its historical valuations. In the past year, while the stock has generated a significant return, its profits have only risen by 125.7%, resulting in a PEG ratio of 0.9.

It is worth noting that despite being a microcap company, domestic mutual funds hold only 0.03% of Artson Engineering's shares. This could indicate that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

Overall, MarketsMOJO's upgrade to a 'Hold' rating on Artson Engineering takes into account the company's positive financial results and bullish technical indicators, but also highlights its high debt and weak long-term growth. Investors should carefully consider these factors before making any investment decisions.