Shivam Autotech Receives Upgraded Stock Call from MarketsMOJO, Showing Positive Results in Q1 2024

Shivam Autotech, a microcap company in the auto ancillary industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on July 29, 2024.
The company has shown positive results in the quarter ending March 2024, with its operating profit to interest ratio at a high of 0.99 times. Its net sales also reached a high of Rs 123.74 crore and PBDIT at Rs 14.94 crore in the same quarter.

Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on July 29, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

With a ROCE of 1.2, the stock is fairly valued and has an enterprise value to capital employed ratio of 2.8. It is currently trading at a discount compared to its average historical valuations. However, despite generating a return of 59.52% in the past year, the company's profits have fallen by -44.5%.

The majority shareholders of Shivam Autotech are its promoters. The stock has outperformed the market (BSE 500) with a return of 59.52% in the last year, compared to the market's return of 37.44%.

However, the company has a high debt and weak long-term fundamental strength. Its net sales and operating profit have shown a negative growth rate of -5.87% and -7.92% respectively over the last 5 years. The debt to equity ratio (average) is at a high of 2.68 times and the company has reported losses, resulting in a negative ROE.

Overall, while the stock has shown a strong performance in the past year, its high debt and weak long-term growth may be a cause for concern. Investors are advised to hold the stock for now and keep an eye on its future performance.