Seasons Textiles Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results and Bullish Technical Trend

Seasons Textiles, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on September 2, 2024. This upgrade is based on the company's positive results in June 2024, with the highest Debtors Turnover Ratio (HY) of 3.92 times, PBT Less OI (Q) of Rs 0.02 crore, and PAT (Q) of Rs 0.13 crore.
Technically, the stock is in a Mildly Bullish range and has shown improvement from Sideways on September 2, 2024. The MACD and Bollinger Band technical factors are also Bullish, indicating a positive trend for the stock.

With a ROCE of 3.8, the stock is currently trading at an attractive valuation with a 0.7 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 53.20%, while its profits have increased by 8%.

The majority shareholders of Seasons Textiles are the promoters, indicating their confidence in the company's performance. The stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance in the long term as well as the near term.

However, the company's long-term fundamental strength is weak, with a -4.98% CAGR growth in Operating Profits over the last 5 years. It also has a high Debt to EBITDA ratio of 5.65 times, indicating a low ability to service debt. The Return on Equity (avg) of 0.19% also signifies low profitability per unit of shareholders' funds.

In conclusion, while Seasons Textiles has shown positive results and a promising technical trend, its long-term fundamental strength and ability to service debt are areas of concern. Investors are advised to hold the stock for now and monitor its performance closely.