Nuvoco Vistas Corporation: Hold Rating Upgraded

Nuvoco Vistas Corporation, a midcap cement company, has recently been upgraded to a 'Hold' rating by MarketsMOJO. The stock is currently in a bullish range and has shown improvement in its technical trend. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.
One of the key reasons for the 'Hold' rating is the company's attractive valuation with a ROCE of 3.1 and an enterprise value to capital employed ratio of 1.3. Additionally, the stock is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 2.70%, while its profits have increased by 429.2%. This has resulted in a low PEG ratio of 0.1 for the company.

However, there are some concerns regarding the company's long-term fundamental strength. The operating profits have shown a negative CAGR growth of -30.41% over the last 5 years, indicating weak performance. The company also has a high debt to EBITDA ratio of 4.51 times, which may affect its ability to service debt. This has also resulted in negative ROE for the company.

In the latest quarter, the company's results have been flat with a significant decline in profits. The PAT(Q) has fallen by -98.5%, and the DEBTORS TURNOVER RATIO(HY) is at its lowest at 15.24 times. This may be a cause for concern for investors.

Overall, Nuvoco Vistas Corporation has underperformed the market in the last 1 year, with a return of only 2.70% compared to the market's return of 24.32%. While the stock may have some bullish indicators, the weak long-term fundamentals and recent decline in profits may be a cause for caution for investors.