MarketsMOJO Upgrades GEE Stock to 'Hold' with Bullish Technical Trend and Attractive Valuation

MarketsMOJO has recently upgraded its stock call on GEE, a microcap company in the electrodes and welding industry, to 'Hold'. This upgrade comes as the technical trend for the stock has improved from Mildly Bullish to Bullish on August 27, 2024. Additionally, multiple factors such as MACD, Bollinger Band, and KST are also showing a bullish trend for the stock.
One of the main reasons for the 'Hold' rating is the stock's attractive valuation. With a ROCE of 8.9 and a 1.5 Enterprise value to Capital Employed, GEE is trading at a discount compared to its average historical valuations. Furthermore, the company's profits have risen by 57.1% in the past year, while the stock has generated a return of 43.14%. This is reflected in the company's low PEG ratio of 0.5.

It is worth noting that the majority shareholders of GEE are its promoters, which can be seen as a positive sign for the company's stability and growth potential. However, the company does have some weak long-term fundamental strength, with an average ROCE of 8.30%. Additionally, its net sales and operating profit have only grown at a rate of 5.11% and 11.96%, respectively, over the last 5 years.

In the latest quarter, GEE's results have been relatively flat, with a decrease in PAT(Q) at Rs 2.64 crore and a decrease in CASH AND CASH EQUIVALENTS(HY) at Rs 0.73 crore. The company's NET SALES(Q) have also been at their lowest at Rs 82.09 crore. However, with the recent upgrade by MarketsMOJO and the company's attractive valuation, GEE may be a stock worth considering for investors.