Soma Textiles & Industries Receives 'Hold' Rating from MarketsMOJO, Positive Technical Trend and Strong Promoter Performance

Soma Textiles & Industries, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on November 11, 2024. This upgrade is based on the technical trend of the stock, which has improved from Mildly Bullish to Bullish since November 6, 2024, resulting in a return of -8.35%. The stock has also shown positive indicators such as MACD, Bollinger Band, KST, and OBV.
The majority shareholders of Soma Textiles & Industries are the promoters, who have contributed to the company's market-beating performance in the long term as well as the near term. In the last year, the stock has generated a return of 123.66%, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

However, the company's ability to service debt is a concern as it has a high Debt to EBITDA ratio of -1.00 times. This has also resulted in negative ROCE due to reported losses. Additionally, the company has shown poor long-term growth with a -29.06% annual growth rate in Net Sales and only 7.98% in Operating profit over the last 5 years.

In the latest quarter, the company's results have been flat with a PAT of Rs 2.74 crore, which has grown at a rate of -97.85%, and a PBDIT of Rs -1.14 crore. The PBT LESS OI is also at its lowest at Rs -1.28 crore. The stock is considered risky due to its negative EBITDA and trading at a higher valuation compared to its historical average.

Despite the stock's impressive return in the past year, its profits have declined by -98.1%, indicating a risky investment. Investors are advised to hold their positions in Soma Textiles & Industries and monitor its performance closely.