MarketsMOJO Upgrades Mahaveer Infoway to 'Hold' Based on Recent Positive Results and Technical Indicators

Mahaveer Infoway, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on January 31, 2024. This upgrade is based on the company's positive results in September 2023, with its ROCE (HY) reaching a high of 12.70%, INVENTORY TURNOVER RATIO (HY) at 8.49 times, and DEBTORS TURNOVER RATIO (HY) at 7.49 times.
Technically, the stock is currently in a Mildly Bullish range and has shown improvement since January 30, 2024, generating a return of 4.81%. Multiple factors such as RSI, MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

At a ROCE of 11.5, Mahaveer Infoway is currently trading at a Very Attractive valuation with a 1 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. However, in the past year, the stock has generated a negative return of -9.90%, while its profits have fallen by -50%.

The majority shareholders of Mahaveer Infoway are non-institutional investors. The company's long-term fundamental strength is weak, with a -27.58% CAGR growth in Net Sales over the last 5 years. Its ability to service its debt is also poor, with a low EBIT to Interest (avg) ratio of 0.04. Additionally, the company has a low Return on Equity (avg) of 1.09%, indicating low profitability per unit of shareholders' funds.

In the last year, Mahaveer Infoway has underperformed the market (BSE 500), which has generated returns of 31.65%. The stock, on the other hand, has generated negative returns of -9.90%. Overall, while the company has shown positive results in the recent past, its long-term fundamentals and performance have been weak. Therefore, MarketsMOJO has upgraded its rating to 'Hold' for Mahaveer Infoway.