National Fittings Receives 'Hold' Rating from MarketsMOJO, Technical Factors Show Bullish Trend

National Fittings, a microcap company in the castings/forgings industry, has recently received a 'Hold' rating from MarketsMOJO on May 3, 2024. This upgrade is based on the company's technical trend, which has improved from sideways to mildly bullish. The stock's MACD and KST technical factors are also showing a bullish trend.
One of the 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 2.1. Additionally, the stock is currently trading at a discount compared to its average historical valuations. Despite a 57.66% return in the past year, the company's profits have only risen by 3.6%, resulting in a PEG ratio of 7.7.

The majority of shareholders in National Fittings are non-institutional investors. The company has also shown consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

However, the company's long-term growth has been poor, with operating profit declining at an annual rate of -5.16% over the last 5 years. In December 2023, the company declared negative results after 1 consecutive positive quarters, with PBT LESS OI(Q) at Rs 1.35 crore, a decrease of -47.47%, and NET SALES(Q) at its lowest of Rs 16.57 crore.

Overall, while National Fittings may have potential for short-term gains, its long-term growth and recent negative results may warrant a 'Hold' rating for now. Investors should carefully consider all factors before making any investment decisions.