Tamilnadu Steel Tubes Upgraded to 'Hold' by MarketsMOJO Amid Bullish Trend

Tamilnadu Steel Tubes, a microcap company in the ferrous metal industry, has recently been upgraded to a 'Hold' by MarketsMOJO on November 22, 2024. This upgrade comes as the stock has shown a bullish trend and has generated a return of -4.91% since November 21, 2024.
The technical indicators for the stock, such as MACD, Bollinger Band, and KST, are all showing bullish signals. Additionally, with a ROCE of 2.4 and an attractive valuation of 1.1 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its historical valuations.

However, the company's profits have fallen by -57% over the past year, resulting in weak long-term fundamental strength with a -38.62% CAGR growth in Operating Profits over the last 5 years. The company also has a high Debt to EBITDA ratio of 7.04 times, indicating a low ability to service debt. Furthermore, the company has only been able to generate a Return on Equity (avg) of 1.40%, signifying low profitability per unit of shareholders' funds.

In the latest quarter, the company's net sales have fallen by -10.5%, and it has underperformed the market (BSE 500) in the last 1 year. While the market has generated returns of 25.57%, Tamilnadu Steel Tubes has generated negative returns of -4.82%.

It is important to note that the majority shareholders of the company are non-institutional investors. Overall, while the stock is currently showing a bullish trend, it is important to consider the company's weak fundamental strength and underperformance in the market before making any investment decisions.