Shetron Receives 'Hold' Rating from MarketsMOJO Based on Technical Indicators and Attractive Valuation

Shetron, a microcap company in the packaging industry, has recently received a 'Hold' rating from MarketsMOJO on October 7, 2024. This upgrade is based on various technical indicators that show the stock is currently in a Mildly Bullish range. Since October 4, the stock has generated a return of 4.46%, indicating an improvement in its technical trend.
One of the key factors contributing to this upgrade is the company's attractive valuation with a ROCE of 15.4 and a 1.6 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 57.08% in the past year, its profits have fallen by -4.3%.

On a positive note, Shetron has consistently outperformed the BSE 500 index in the last 3 annual periods, showcasing its ability to generate consistent returns. However, the company's high Debt to EBITDA ratio of 3.26 times raises concerns about its ability to service debt.

Furthermore, the company has shown poor long-term growth with a low annual growth rate of 6.74% in Net Sales and 6.60% in Operating profit over the last 5 years. In the latest quarter, the company's results have been negative with a ROCE of 15.41%, a decrease in Net Sales by -18.03%, and an increase in Interest by 32.77%.

Overall, while Shetron's stock has shown some positive indicators, it is important to consider the company's high debt and poor long-term growth before making any investment decisions. Investors are advised to do their own research and consult with a financial advisor before making any decisions.