Siyaram Silk Mills Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability

Siyaram Silk Mills, a smallcap company in the lifestyle industry, has recently received a 'Hold' rating from MarketsMOJO on October 9, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.23 times.
The stock is currently in a Mildly Bullish range, with technical trends showing improvement from Mildly Bearish on October 9, 2024. Multiple factors such as MACD, Bollinger Band, and OBV are also indicating a bullish outlook for the stock. Additionally, Siyaram Silk Mills has a Very Attractive valuation with a ROCE of 17.8 and a 2 Enterprise value to Capital Employed.

However, the company has shown poor long-term growth with Net Sales and Operating profit growing at a rate of only 2.35% and 3.93% respectively over the last 5 years. The company has also declared negative results for the last 5 consecutive quarters, with its ROCE(HY) and OPERATING PROFIT TO INTEREST (Q) at their lowest levels at 20.38% and 2.14 times respectively. The DEBTORS TURNOVER RATIO(HY) is also at its lowest at 4.47 times.

Despite being a smallcap company, domestic mutual funds hold only 0.32% of Siyaram Silk Mills. This could indicate that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

In terms of performance, Siyaram Silk Mills has underperformed the BSE 500 in the last 3 years, 1 year, and 3 months, with a return of -4.71% in the last 1 year. Overall, while the company has a strong ability to service debt and a bullish outlook, its poor long-term growth and recent negative results may make it a 'Hold' for now. Investors should keep an eye on the company's performance in the coming quarters before making any investment decisions.