Shivalik Bimetal Controls Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth Potential

Shivalik Bimetal Controls, a smallcap company in the iron and steel industry, has recently received an upgraded stock call of 'Hold' from MarketsMOJO on January 30, 2024. This upgrade is based on the company's strong ability to service debt, healthy long-term growth, and consistent positive results for the past 13 quarters.
One of the key factors contributing to the 'Hold' rating is the company's low Debt to EBITDA ratio of 0.74 times, indicating a strong ability to manage its debt. Additionally, Shivalik Bimetal Controls has shown a steady growth in Net Sales at an annual rate of 27.25% and Operating profit at 88.33%. This showcases the company's potential for long-term growth.

Moreover, the company has declared positive results for the last 13 consecutive quarters, with its Operating profit to Interest ratio being the highest at 23.90 times and Net Sales at Rs 127.76 crore. It also has a healthy cash reserve of Rs 32.44 crore, as reported in the latest half-yearly results.

From a technical standpoint, the stock is currently in a mildly bullish range and has shown an improvement in its trend from sideways on January 30, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish trend for the stock.

The majority shareholders of Shivalik Bimetal Controls are the promoters, which adds to the company's stability and potential for growth. It has also consistently outperformed BSE 500 in the last three annual periods, showcasing its strong performance in the market.

However, with a ROE of 26.3, the stock is currently trading at a very expensive valuation with a 10.8 Price to Book Value. But, it is still trading at a discount compared to its average historical valuations, making it an attractive investment opportunity. Additionally, while the stock has generated a return of 51.03% in the last year, its profits have only risen by 12.5%, resulting in a PEG ratio of 3.

In conclusion, Shivalik Bimetal Controls is a smallcap company with a strong potential for growth and a stable financial position. With a 'Hold' rating from MarketsMOJO and consistent returns over the last three years, it is a stock worth considering for investors.