Super Sales India Receives 'Hold' Rating from MarketsMOJO, Technical Factors Drive Upgrade

Super Sales India, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on July 5th, 2024. This upgrade is based on various technical factors, such as the stock being in a bullish range and improvements in the technical trend.
The company's ROCE (Return on Capital Employed) stands at 3.2, indicating a fair valuation with a 1 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, despite generating a return of 92.05% in the past year, the company's profits have fallen by -27.9%.

Super Sales India has also shown strong market performance in the long term, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months. However, the company's management efficiency is a cause for concern, with a low ROE (Return on Equity) of 5.11%. This signifies low profitability per unit of shareholders' funds.

Furthermore, the company has shown poor long-term growth, with net sales growing at an annual rate of 7.24% over the last 5 years. In the latest quarter, the company's profits have fallen by -130.8%, with a low ROCE of 4.84% and a low operating profit to interest ratio of 2.10 times.

It is also worth noting that despite being a microcap company, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the company's current price or its business, as domestic mutual funds have the capability to conduct in-depth research on companies.

In conclusion, while Super Sales India has shown strong market performance in the past year, its poor management efficiency and long-term growth may be a cause for concern. Investors are advised to hold onto their stocks for now and keep an eye on the company's future performance.