Pasupati Spinning & Weaving Mills Receives 'Hold' Rating, But Weak Long-Term Fundamentals Remain a Concern

Pasupati Spinning & Weaving Mills, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO. The stock has been in a bullish range and has generated a return of 11.73% since May 28, 2024. This is due to multiple factors such as MACD, Bollinger Band, KST, and OBV being bullish. Additionally, with a ROCE of 4.4, the stock is currently trading at a discount compared to its historical valuations.
However, the company's profits have fallen by -46.4% in the past year, despite generating a return of 55.20%. The majority shareholders of Pasupati Spinning & Weaving Mills are the promoters, and the company has consistently generated returns over the last 3 years.

On the other hand, the company has a weak long-term fundamental strength with a -1.03% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 7.77 times, indicating a low ability to service debt. The return on equity (avg) of 0.83% also signifies low profitability per unit of shareholders' funds.

In the latest quarter, the company's net sales have fallen by -8.3% to Rs 26.51 crore. Overall, while Pasupati Spinning & Weaving Mills has shown some positive signs, it is important to consider the weak long-term fundamentals before making any investment decisions.