SPL Industries Receives 'Hold' Rating from MarketsMOJO Based on Strong Management Efficiency and Long-Term Growth

SPL Industries, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on January 15, 2024. This upgrade is based on the company's high management efficiency, with a ROE of 20.08%, and a low Debt to Equity ratio of 0 times. Additionally, the company has shown healthy long-term growth, with an annual operating profit growth rate of 46.34%.
Technically, the stock is currently in a bullish range and has shown improvement since January 10, 2024, generating a return of 1.15%. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish trend for the stock.

However, with a ROE of 7.6, the stock is currently trading at a premium compared to its historical valuations. In the past year, while the stock has only generated a return of 0.01%, its profits have fallen by -48.4%.

The majority shareholders of SPL Industries are the promoters, and the company has declared negative results for the last three consecutive quarters. In September 2023, the company reported a significant decline in net sales by -50.99%, leading to very negative results. The ROCE (HY) was at its lowest at 11.93%, and PBDIT (Q) and PBT LESS OI (Q) were also at their lowest at Rs 1.63 crore and Rs 0.30 crore, respectively.

In the last year, SPL Industries has underperformed the market, generating a return of only 0.01%, while the market (BSE 500) has shown a return of 28.66%. With these factors in mind, MarketsMOJO has upgraded the stock to a 'Hold' rating. Investors should carefully consider these factors before making any investment decisions.