Rajasthan Tube Manufacturing Co Receives 'Hold' Rating from MarketsMOJO, Showing Improved Technical Trend and Attractive Valuation

Rajasthan Tube Manufacturing Co, a microcap company in the iron and steel industry, has recently received a 'Hold' rating from MarketsMOJO on January 16, 2024. This upgrade is based on the company's improved technical trend, with the stock currently in a bullish range. Since January 15, 2024, the stock has generated a return of -1.83%, further supporting the bullish trend. Additionally, the MACD and KST technical factors are also showing a bullish trend.
In terms of valuation, the company has an attractive ROCE of 13 and a low enterprise value to capital employed ratio of 1.4. The stock is also trading at a discount compared to its historical valuations. Over the past year, the stock has outperformed the market with a return of 95.28%, while its profits have increased by 92%. The PEG ratio of the company is also at a favorable 0, indicating potential for future growth.

The majority shareholders of Rajasthan Tube Manufacturing Co are the promoters, which can be seen as a positive sign for investors. However, the company's long-term fundamental strength is weak, with poor growth in net sales over the last 5 years and a low EBIT to interest ratio of 1.40. The return on equity is also low at 6.61%, indicating low profitability per unit of shareholders' funds.

In the latest quarter, the company's results were flat, which could be a cause for concern. Overall, while the stock has shown strong performance in the past year, investors should carefully consider the company's high debt and weak long-term fundamentals before making any investment decisions.