Soma Textiles & Industries Receives 'Hold' Rating from MarketsMOJO Based on Technical Analysis

Soma Textiles & Industries, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on September 27, 2024. This upgrade is based on technical analysis, with the stock currently in a bullish range and showing improvement in its technical trend.
The company's majority shareholders are its promoters, indicating a strong belief in the company's potential. In fact, Soma Textiles & Industries has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a market-beating performance in both the long and near term.

However, there are some concerns regarding the company's financial health. Soma Textiles & Industries has a high debt to EBITDA ratio of -1.00 times, indicating a low ability to service its debt. The company has also reported losses, resulting in a negative return on capital employed.

In terms of growth, the company has shown poor performance in the long term, with a decline in net sales and operating profit over the last 5 years. In addition, the results for the quarter ending June 2024 were flat, with a significant decrease in profits.

The stock is also considered risky due to its negative EBITDA and trading at a higher valuation compared to its historical average. While the stock has generated a high return of 109.82% in the past year, its profits have declined by -98.1%.

Overall, while Soma Textiles & Industries may have potential in the textile industry, it is important for investors to carefully consider the company's financial health and performance before making any investment decisions.