Maximus International Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability

Maximus International, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.88 times. Additionally, the company has shown positive results for the last two consecutive quarters, with a growth in net sales of 84.48% in June 2024.
The technical trend for Maximus International is currently sideways, indicating no clear price momentum. However, it has improved from being mildly bearish on 12-Nov-24 and has generated a return of 4.82% since then. Furthermore, promoter holding has increased this quarter and now stands at 61.45% of the company.

On the downside, the company has shown poor long-term growth with net sales growing at an annual rate of 19.95% and operating profit at -149.59% over the last 5 years. Additionally, with a ROCE of 11.3, the stock is considered to have an expensive valuation with a 5.3 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite the mixed performance, Maximus International has generated a return of 27.05% over the past year, with profits rising by 33.6%. The PEG ratio of the company stands at 1.4, indicating a fair valuation. Overall, while the company has shown some positive results in the recent quarters, its long-term growth and valuation may be a cause for concern. Investors are advised to hold on to their positions for now and monitor the company's performance closely.