SML ISUZU Upgraded to 'Hold' by MarketsMOJO, Showing Strong Growth and Positive Financial Results

SML ISUZU, a smallcap company in the auto-truck industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's healthy long-term growth, positive financial results, and technical indicators.
One of the main reasons for the 'Hold' rating is the company's consistent growth in operating profit, which has increased by an annual rate of 38.65%. Additionally, SML ISUZU has declared positive results for the last 10 consecutive quarters, with its PBT LESS OI(Q) growing at an impressive rate of 103.69%.

The stock is also showing a mildly bullish trend, with technical indicators such as Bollinger Band and KST also pointing towards a positive outlook. Furthermore, SML ISUZU has consistently outperformed the BSE 500 index in the last 3 years, generating a return of 48.15%.

However, there are some concerns regarding the company's ability to service debt, as it has a high Debt to EBITDA ratio of 4.60 times. This, coupled with a low long-term growth rate of 10.10% in net sales over the last 5 years, may be a cause for caution.

In terms of valuation, SML ISUZU has a high ROCE of 20 and is trading at a discount compared to its historical average. However, the PEG ratio of the company is 0.2, indicating that its profits have risen at a much faster rate than its stock price.

It is also worth noting that despite its smallcap size, domestic mutual funds hold only 0% of the company, which could suggest that they are not comfortable with the current price or the business itself.

Overall, while SML ISUZU shows potential for growth and has been upgraded to a 'Hold' by MarketsMOJO, investors should carefully consider the company's debt and long-term growth before making any investment decisions.