Supertex Industries Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth in Net Sales

Supertex Industries, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last four consecutive quarters, with a significant growth of 174.09% in net sales.
Technically, the stock is currently in a mildly bullish range, with the trend improving from mildly bearish on October 8, 2024. This is supported by multiple bullish factors such as MACD, Bollinger Band, and KST.

Moreover, Supertex Industries has a very attractive valuation with a ROCE of 4.2 and an enterprise value to capital employed ratio of 0.7. The stock is also trading at a discount compared to its average historical valuations. However, despite generating a return of 15.27% in the past year, the company's profits have only risen by 2%, resulting in a low PEG ratio of 0.7.

On the other hand, the company has weak long-term fundamental strength, with a CAGR growth of only 4.88% in net sales over the last five years. Additionally, Supertex Industries has a high debt to EBITDA ratio of 5.84 times, indicating a low ability to service debt. The return on equity (avg) of 1.16% also signifies low profitability per unit of shareholders' funds.

In the last year, Supertex Industries has underperformed the market, with a return of 15.27%, much lower than the market (BSE 500) returns of 35.27%. While the company has shown positive results in the recent quarters, it is important to consider its weak long-term fundamentals and underperformance in the market before making any investment decisions. As of now, MarketsMOJO recommends a 'Hold' on Supertex Industries stock.