Maximus International Receives 'Hold' Rating from MarketsMOJO Based on Neutral Outlook

Maximus International, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on several factors that indicate a neutral outlook for the company.
One of the key reasons for the 'Hold' rating is the company's strong ability to service debt. Maximus International has a low Debt to EBITDA ratio of 0.82 times, which shows that it is in a good position to manage its debt. Additionally, the company has shown healthy long-term growth with an annual rate of 30.00% in operating profit.

From a technical standpoint, the stock is currently in a bullish range. The technical trend has improved from Mildly Bullish on 16-Jan-24, with multiple factors such as RSI, MACD, KST, and OBV all indicating a bullish trend.

However, there have been some negative results for the company in September 2023. The ROCE (HY) was at its lowest at 16.41%, while the DEBTORS TURNOVER RATIO (HY) was also at its lowest at 1.75 times. Additionally, the net sales for the quarter were at Rs 24.76 crore, showing a decline of -13.82%.

The stock also has an expensive valuation with an Enterprise value to Capital Employed ratio of 5.8. However, it is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 5.92%, its profits have fallen by -3.7%.

Moreover, there has been a decrease in promoter confidence as they have reduced their stake in the company by -0.98% over the previous quarter. Currently, promoters hold 62.65% of the company, which may signify reduced confidence in the future of the business.

In the last year, the stock has underperformed the market, generating a return of 5.92% compared to the market (BSE 500) returns of 28.61%. This further supports the 'Hold' rating for Maximus International.

Overall, while the company has shown some positive aspects, there are also some concerns that need to be considered. Therefore, the 'Hold' rating by MarketsMOJO seems appropriate for now. Investors should keep a close eye on the company's performance in the future to make informed decisions.