NESCO Receives 'Hold' Rating from MarketsMOJO, Strong Financials and Technical Trend Support Upgrade

NESCO, a midcap company in the capital goods industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times, indicating a strong financial position.
In addition, the stock is currently in a Bullish range and the technical trend has improved from Mildly Bullish on 15-Oct-24. This is supported by multiple factors such as MACD, Bollinger Band, KST, and DOW.

The majority shareholders of NESCO are the promoters, which is a positive sign for investors. The stock has also outperformed the market (BSE 500) with a return of 46.42% in the last year, compared to the market's return of 35.67%.

However, the company has shown poor long-term growth with Net Sales and Operating profit growing at an annual rate of 13.64% and 11.37% respectively over the last 5 years. In addition, NESCO declared negative results in Jun'2024 after 9 consecutive positive quarters, with PBT LESS OI(Q) at Rs 70.93 cr falling by -20.8%, PAT(Q) at Rs 69.79 cr falling by -23.1%, and NET SALES(Q) at Rs 141.35 cr falling by -16.6%.

With a ROE of 15.2, NESCO currently has a Very Expensive valuation with a 3.3 Price to Book Value. However, the stock is trading at a discount compared to its average historical valuations. While the stock has generated a strong return of 46.42% in the past year, its profits have only risen by 13.9%, resulting in a PEG ratio of 1.5.

Overall, NESCO's recent 'Hold' rating from MarketsMOJO is based on its strong financial position and technical trend, but investors should also consider the company's poor long-term growth and expensive valuation.