NTC Industries Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth and Bullish Trend

NTC Industries, a microcap company in the cigarettes/tobacco industry, has recently received a 'Hold' rating from MarketsMOJO on May 13, 2024. This upgrade comes as the company has shown a healthy long-term growth with a low Debt to Equity ratio of 0.08 times. The company's Net Sales have grown at an annual rate of 27.30% and Operating profit at 67.70%, indicating a positive trend. The stock is also technically in a Bullish range, with multiple factors such as MACD, Bollinger Band, and KST showing a bullish trend. However, with a ROE of 6.7, the stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 80.74%, outperforming the BSE 500 index. The majority shareholders of NTC Industries are the promoters, indicating their confidence in the company's performance. The stock has shown market-beating performance in both the long-term and near-term, making it an attractive option for investors. However, the company declared very negative results in December 2023, with a fall in Operating Profit of -31.09%. This has been the case for the last two consecutive quarters, with a significant decrease in PAT(Q) at Rs -0.74 cr and a lowest ROCE(HY) at 9.35%. The NET SALES(Q) have also fallen to the lowest at Rs 7.35 cr. Overall, NTC Industries has shown promising growth and a bullish trend, but investors should keep an eye on the company's financial performance in the upcoming quarters. With a 'Hold' rating, it is recommended to monitor the stock closely before making any investment decisions.