MarketsMOJO upgrades Prakash Steelage to 'Hold' based on technical trend and outperformance in trading industry

On September 16, 2024, MarketsMOJO upgraded their stock call on Prakash Steelage to 'Hold'. This decision was based on the stock's technical trend, which has improved from Mildly Bullish on September 13, 2024 and has generated a return of -1.77% since then. Additionally, multiple factors such as MACD, Bollinger Band, and KST have contributed to the stock's bullish performance.

Prakash Steelage is a microcap company in the trading industry with majority shareholders being non-institutional investors. Despite its small size, the company has outperformed the market (BSE 500) with a return of 45.82% in the last year, compared to the market's return of 34.97%.

However, the company does have some concerning factors. It has a high debt to equity ratio (avg) of 0 times, indicating a heavy reliance on debt. Furthermore, its long-term growth has been poor, with net sales growing at an annual rate of 17.07% and operating profit remaining stagnant at 0% over the last 5 years. This has also resulted in negative returns on equity for the company.

In the latest quarter, Prakash Steelage reported negative results, with a decline in profits and net sales. The company's PAT (HY) has grown at a rate of -29.65%, while its net sales (Q) and PBDIT (Q) have hit their lowest at Rs 16.77 crore and Rs -0.57 crore, respectively.

Overall, while Prakash Steelage has shown a bullish trend in the short term, its long-term growth and high debt levels may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.