National Plastic Industries Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Strong Short-Term Performance.

National Plastic Industries, a microcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical indicators, such as the stock being in a bullish range and improvements in its technical trend.
One of the main reasons for the 'Hold' rating is the stock's attractive valuation, with a ROCE of 12.3 and a 1.4 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its historical valuations. Over the past year, the stock has generated a return of 93.63%, while its profits have increased by 31.8%. This is reflected in the company's low PEG ratio of 0.4.

The majority shareholders of National Plastic Industries are the promoters, which can be seen as a positive sign for investors. The company has also shown consistent returns over the last 3 years, outperforming the BSE 500 index.

However, the company's long-term fundamental strength is weak, with an average ROCE of 7.11%. Its net sales have declined by an annual rate of -1.01% and operating profit at 4.92% over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 5.42 times, indicating a low ability to service debt.

In the latest quarter, the company's net sales have fallen by -19.51%, which could be a cause for concern for investors. Overall, while National Plastic Industries has shown strong short-term performance, its long-term fundamentals may need improvement. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.