Solitaire Machine Tools Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results and Bullish Trend

Solitaire Machine Tools, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO on November 4th, 2024. This upgrade comes after the company reported positive results in June 2024, with the highest operating cash flow of Rs 2.56 crore and dividend per share of Rs 1.75. The company's net sales for the last 9 months have also shown a growth of 28.21%.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on November 4th, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV have contributed to the bullish trend.

The majority of the shareholders for Solitaire Machine Tools are non-institutional investors. The stock has also outperformed BSE 500 in the long term as well as the near term, generating a return of 72.55% in the last year.

However, the company's long-term fundamental strength is weak, with a -1.87% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is poor, with a low EBIT to Interest ratio of 1.62. The return on equity for the company is also low at 7.81%, indicating low profitability per unit of shareholders' funds.

With a ROE of 10.3, the stock is currently trading at an expensive valuation with a price to book value of 2.6. However, it is still trading at a discount compared to its average historical valuations. While the stock has generated a return of 72.55% in the past year, its profits have only increased by 9.4%, resulting in a PEG ratio of 2.7.

Overall, Solitaire Machine Tools has shown positive results and a bullish trend in the short term, but its long-term fundamental strength and valuation may be a cause for concern. Investors are advised to hold onto their positions for now and monitor the company's performance closely.