MarketsMOJO Upgrades Ashnoor Textile Mills to 'Hold' Rating, Strong Financials and Bullish Indicators Support Decision

Ashnoor Textile Mills, a microcap company in the textile industry, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on August 16, 2024.
The upgrade is based on the company's healthy long-term growth, with an annual growth rate of 63.63% in operating profit. In fact, in the quarter ending June 2024, Ashnoor Textile Mills declared very positive results with a growth of 141.46% in operating profit. The PBT LESS OI(Q) has also seen a significant growth of 311.6%, while the DEBT-EQUITY RATIO(HY) is at its lowest at 1.18 times. Additionally, the company's NET SALES(Q) have reached a high of Rs 49.71 crore.

Technically, the stock is currently in a mildly bullish range. The technical trend has improved from mildly bearish on August 14, 2024, and has generated a return of 1.56% since then. Multiple factors, such as MACD, Bollinger Band, and KST, are also indicating a bullish trend for the stock.

Attractive valuation is another factor contributing to the 'Hold' rating for Ashnoor Textile Mills. With a ROCE of 7.3 and an enterprise value to capital employed ratio of 1.1, the stock is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 52.74%, while its profits have risen by 40.5%. The PEG ratio of the company is also at a low of 0.2.

The majority shareholders of Ashnoor Textile Mills are the promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 52.74% in the last year, compared to the market's return of 36.18%.

Overall, with its strong financial performance, bullish technical indicators, and attractive valuation, Ashnoor Textile Mills is a stock worth considering for a 'Hold' position.