Soma Textiles & Industries Receives 'Hold' Rating Amid Bullish Trend and Concerns Over Debt and Promoter Shareholders

Soma Textiles & Industries, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on May 21, 2024. This upgrade comes as the stock has shown a bullish trend and has generated a return of 1.58% since May 18, 2024.
The technical trend for Soma Textiles & Industries has improved from Mildly Bullish to Bullish, with factors such as MACD, Bollinger Band, and KST all showing positive signs. However, the company's majority shareholders are promoters, which may raise concerns about potential conflicts of interest.

One major concern for Soma Textiles & Industries is its high Debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt. The company has also reported losses, resulting in a negative ROCE. Additionally, its long-term growth has been poor, with net sales and operating profit declining by -27.50% and -46.96%, respectively, over the last 5 years.

In December 2023, the company reported flat results, which may be a cause for concern. Furthermore, the stock is considered risky due to its negative EBITDA and trading at higher valuations compared to its historical average.

Despite generating a return of 28.31% in the past year, Soma Textiles & Industries' profits have fallen by -103.7%, indicating potential risks for investors. With these factors in mind, MarketsMOJO has upgraded the stock to a 'Hold' rating, suggesting a neutral stance for investors.