MarketsMOJO Upgrades M K Exim (India) to 'Hold' Based on Strong Financials and Technical Trends

M K Exim (India) is a microcap company in the textile industry. Recently, MarketsMOJO has upgraded its stock call to 'Hold' on 22nd April 2024. This decision is based on several factors, including the company's low Debt to Equity ratio of 0.06 times, indicating a healthy financial position.
Moreover, M K Exim has shown consistent long-term growth with an annual increase of 35.19% in Net Sales and 81.87% in Operating profit. The stock is also currently in a Mildly Bullish range, with technical trends improving since 16th April 2024 and generating a return of 3.79% since then. The Bollinger Band, a key technical factor, has been Bullish since 16th April 2024.

However, the company did face some negative results in December 2023, with a -23.10% growth in PAT (HY) and the lowest ROCE (HY) at 32.17%. The NET SALES (Q) were also at their lowest at Rs 19.23 crore. Additionally, with an ROE of 21.2, the stock is currently trading at an expensive valuation with a Price to Book Value of 4.3. This is higher than its average historical valuations.

Despite a 47.06% return in the past year, the company's profits have only risen by 0.3%, resulting in a high PEG ratio of 16.9. It is important to note that M K Exim (India) has majority shareholders who are non-institutional investors.

In conclusion, while M K Exim (India) has shown strong long-term growth and a healthy financial position, its recent negative results and expensive valuation may be a cause for concern. Investors are advised to hold onto their stocks and monitor the company's performance closely.