Super Tannery Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Bullish Trend Cited

Super Tannery, a microcap company in the leather industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and multiple technical indicators are pointing towards a positive outlook.
One of the main reasons for the 'Hold' rating is the attractive valuation of the company. With a ROCE of 6.5 and a 1.3 Enterprise value to Capital Employed, Super Tannery is trading at a discount compared to its historical valuations. Additionally, the stock has generated a return of 44.89% in the past year, while its profits have also increased by 6.5%. However, the PEG ratio of the company is 3.5, indicating a potential overvaluation.

Super Tannery has also shown consistent returns over the last 3 years, outperforming the BSE 500 index. However, its long-term fundamental strength is weak with a -1.13% CAGR growth in Operating Profits over the last 5 years. The company also has a high Debt to EBITDA ratio of 4.22 times, indicating a low ability to service debt. Moreover, its Return on Equity (avg) is 5.75%, which is relatively low compared to its peers.

In the latest quarter, Super Tannery's results were flat, with a 55.21% growth in interest expenses. Additionally, 51.12% of the promoter shares are pledged, which can put downward pressure on the stock prices in falling markets.

Overall, while Super Tannery has shown a bullish trend and attractive valuation, its long-term fundamental strength and high promoter pledged shares are areas of concern. Investors are advised to hold the stock for now and monitor its performance closely.