RTS Power Corporation Receives 'Hold' Rating from MarketsMOJO, Shows Strong Long-Term Growth

RTS Power Corporation, a microcap company in the capital goods industry, has recently received a 'Hold' rating from MarketsMOJO on March 6, 2024. This upgrade is based on the company's healthy long-term growth, with net sales increasing by an annual rate of 21.84% and operating profit by 272.42%.
Technically, the stock is in a mildly bullish range and its MACD and KST technical factors are also bullish. With a return on equity of 5.3, the company has an attractive valuation with a price to book value of 1.1. Additionally, the stock is currently trading at a fair value compared to its historical valuations.

However, there are some concerns regarding the company's management efficiency, with a low return on capital employed of 2.24%. This indicates low profitability per unit of total capital, including equity and debt.

In the last year, RTS Power Corporation's profits have fallen by -30.9%, while the stock has generated a return of 15.91%. The majority shareholders of the company are promoters.

In the latest financial results for December 2023, the company reported negative results with a -60.89% growth in profit after tax and the lowest cash and cash equivalents at Rs 0.42 crore. Non-operating income accounted for 62.43% of the profit before tax.

Overall, RTS Power Corporation has underperformed the market in the last year, with a return of 15.91% compared to the market's return of 36.15%. Investors are advised to hold their positions in the stock and monitor the company's performance closely.