MarketsMOJO Upgrades Hisar Metal Industries to 'Hold' Amidst Mixed Financial Performance

MarketsMOJO, a leading financial analysis firm, has recently upgraded its stock call on Hisar Metal Industries to 'Hold'. This decision is based on various technical indicators, such as MACD, KST, and OBV, which suggest a mildly bullish trend for the stock.

One of the key factors contributing to this upgrade is the company's attractive valuation, with a ROCE (Return on Capital Employed) of 12.6 and an Enterprise value to Capital Employed ratio of 1.4. Additionally, the stock is currently trading at a discount compared to its historical valuations.

However, there are some concerns regarding the company's financial health. Over the past year, while the stock has generated a return of 24.69%, its profits have fallen by -55.6%. This could be attributed to the company's high Debt to EBITDA ratio of 3.51 times, indicating a low ability to service debt.

Moreover, the company has also shown poor long-term growth, with Net Sales growing at an annual rate of 2.77% and Operating profit at 5.80% over the last 5 years. This could be a cause for concern for potential investors.

In addition, Hisar Metal Industries has declared negative results for the last 4 consecutive quarters. The PBT (Profit Before Tax) has fallen by -41.47% at Rs 1.99 crore, while the PAT (Profit After Tax) has grown by -39.20% at Rs 3.63 crore. The company's ROCE (Return on Capital Employed) for the half-year period is also at its lowest at 12.75%.

It is worth noting that the majority shareholders of Hisar Metal Industries are the promoters, which could be seen as a positive sign for the company's stability and growth potential.

In conclusion, while MarketsMOJO has upgraded its stock call on Hisar Metal Industries to 'Hold', there are some concerns regarding the company's financial health and long-term growth. Investors are advised to carefully consider these factors before making any investment decisions.