NMS Global Receives 'Hold' Rating After Positive Results and Attractive Valuation

NMS Global, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared positive results for the last four consecutive quarters, with net sales of Rs 19.44 crore in the last nine months. The stock is currently in a mildly bullish range, with technical factors such as KST and OBV also showing bullish signals.
One of the reasons for the 'Hold' rating is the company's attractive valuation, with a ROCE of 2.1 and an enterprise value to capital employed ratio of 1.4. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 5.15% in the past year, its profits have fallen by -6%.

NMS Global has a majority of non-institutional shareholders and is considered a high debt company with weak long-term fundamental strength. Its net sales have only grown by an annual rate of 15.32% in the last five years, and its operating profit has seen a decline of -65.77%. The company also has a high debt to equity ratio of 2.60 times, and its return on equity is at a low of 1.63%, indicating low profitability per unit of shareholders' funds.

In the past year, NMS Global has underperformed the market, with a return of only 5.15% compared to the market's (BSE 500) returns of 34.39%. While the company's recent positive results and technical signals may be promising, it is important to consider its high debt and weak long-term growth before making any investment decisions. As always, it is recommended to do thorough research and consult with a financial advisor before making any investment in the stock market.