National Fittings Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Technical Indicators Point to Mildly Bullish Trend

National Fittings, a microcap company in the castings/forgings industry, has recently received a 'Hold' rating from MarketsMOJO on May 16, 2024. This upgrade is based on various technical indicators such as MACD, Bollinger Band, and KST, which all point towards a mildly bullish trend for the stock.
One of the main reasons for this upgrade is the company's attractive valuation, with a ROCE of 12.9 and an enterprise value to capital employed ratio of 1.9. Additionally, the stock is currently trading at a discount compared to its historical valuations, making it an attractive option for investors.

However, it is important to note that National Fittings has shown poor long-term growth, with operating profit declining at an annual rate of -5.16% over the last 5 years. This could be a cause for concern for potential investors.

Furthermore, the company has recently declared negative results in December 2023 after 1 consecutive positive quarters. The PBT LESS OI(Q) has fallen by -47.47% at Rs 1.35 crore, while the NET SALES(Q) have also decreased to the lowest at Rs 16.57 crore.

It is worth mentioning that the majority shareholders of National Fittings are non-institutional investors, which may indicate a lack of confidence from larger investors in the company's future prospects.

In conclusion, while National Fittings may have some positive indicators, it is important for investors to carefully consider the company's long-term growth and recent negative results before making any investment decisions.