MarketsMOJO Upgrades S.M. Gold Stock to 'Hold' Based on Technical Trend and Valuation

On September 24, 2024, MarketsMOJO upgraded their stock call on S.M. Gold to 'Hold'. This decision was based on the company's recent technical trend, which has improved from Mildly Bullish to Bullish. Factors such as MACD, Bollinger Band, and KST also indicate a positive outlook for the stock.

In terms of valuation, S.M. Gold has a Very Attractive ROCE of 6.1 and a 1.3 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 112.70% in the past year, its profits have fallen by -8.1%.

Despite its market-beating performance, the company has a Weak Long Term Fundamental Strength due to its operating losses. Over the last 5 years, the operating profit has only grown at an annual rate of 7.86%. Furthermore, S.M. Gold has a high Debt to EBITDA ratio of 9.72 times, indicating a low ability to service debt.

In the most recent quarter, the company's results were flat with a PBDIT(Q) of -0.20 cr. and an OPERATING PROFIT TO NET SALES (Q) of -0.86%. The EPS(Q) was also at its lowest at Rs -0.35. While the stock has shown strong performance in the past year, it is important to consider the company's long-term growth and financial stability before making any investment decisions.