Sar Auto Products Receives 'Hold' Rating from MarketsMOJO, Promoters Increase Stake

Sar Auto Products, a smallcap company in the auto ancillary industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in December 2023, with a significant growth in net sales and a higher profit after tax.
The stock is currently in a bullish trend, with technical indicators such as MACD, Bollinger Band, KST, and OBV all showing positive signs. Additionally, the promoters of Sar Auto Products have increased their stake in the company by 3.25% in the previous quarter, indicating their confidence in the future of the business.

However, the company's long-term fundamental strength is weak, with an average return on equity of only 3.85% and poor growth in net sales and operating profit over the last 5 years. The company also has a weak ability to service its debt, with a low EBIT to Interest ratio.

Moreover, the stock is currently trading at a premium compared to its historical valuations, with a price to book value of 63.6. While the stock has generated a high return of 151.12% in the last year, its profits have declined by -23.7%.

Overall, Sar Auto Products may be a good hold for now, but investors should closely monitor the company's financial performance and future growth prospects before making any investment decisions.