Simplex Castings Receives 'Hold' Rating Upgrade

Simplex Castings, a microcap company in the castings and forgings industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical indicators such as MACD, Bollinger Band, and KST, which all point towards a bullish trend for the stock.
Despite the recent positive trend, the company's fundamentals show some weaknesses. Its return on capital employed (ROCE) is at 8%, indicating low profitability per unit of total capital. Additionally, the company has a high debt to EBITDA ratio of -1.00 times, which may affect its ability to service debt.

However, Simplex Castings has consistently generated returns over the past three years, outperforming the BSE 500 index. In the last year alone, the stock has generated a return of 26.29%. But, its profits have fallen by -306.9% in the same period.

The majority shareholders of Simplex Castings are its promoters, which may indicate their confidence in the company's future prospects. However, the company's long-term fundamental strength is weak, with a -6.85% CAGR growth in operating profits over the last five years.

In the latest quarter, the company's results were flat, with a PBT LESS OI(Q) of Rs -0.40 crore, a decrease of -139.60% from the previous quarter. The ROCE(HY) is also at its lowest at -4.39%.

Overall, while the technical indicators show a bullish trend for Simplex Castings, investors should carefully consider the company's fundamentals before making any investment decisions.