Maximus International Receives 'Hold' Rating Upgrade

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 0.82 times. Additionally, the company has shown healthy long-term growth, with an annual operating profit growth rate of 30.00%.
Technically, the stock is currently in a bullish range, with the technical trend improving from mildly bullish on January 1, 2024. Multiple factors, such as RSI, MACD, Bollinger Band, and KST, also indicate a bullish outlook for the stock.

However, the company did face some negative results in September 2023, with its ROCE (HY) at its lowest at 16.41%, and its DEBTORS TURNOVER RATIO (HY) at its lowest at 1.75 times. Additionally, its net sales for the quarter fell by -13.82% to Rs 24.76 crore.

With an ROCE of 17.3, the stock currently has an expensive valuation, with an enterprise value to capital employed ratio of 5.6. However, it is trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of -8.81%, while 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 and currently hold 62.65% of the company. This decrease in stake may signify reduced confidence in the future of the business.

In the last year, the stock has underperformed the market (BSE 500), generating negative returns of -8.81%, while the market has generated returns of 25.12%. Overall, while Maximus International has shown potential for growth, it is currently facing some challenges that may affect its performance in the short term. Investors are advised to hold their positions and monitor the company's progress closely.