Tide Water Oil Co (I) Receives 'Buy' Rating and Shows Strong Financials, Technical Trends, and Market Performance

Tide Water Oil Co (I) has recently caught the attention of investors as MarketsMOJO upgraded its stock to a 'Buy' rating on April 26, 2024. This smallcap company in the lubricants industry has shown promising results in the past few months, making it a favorable choice for investors.

One of the key factors contributing to the 'Buy' rating is the company's low Debt to Equity ratio, which stands at 0 times on average. This indicates a strong financial position and stability for the company.

In December 2023, Tide Water Oil Co (I) reported positive results, with its CASH AND CASH EQUIVALENTS (HY) at a record high of Rs 194.28 crore. The company also saw its DEBTORS TURNOVER RATIO (HY) reach 8.26 times, and its PBDIT (Q) at Rs 41.61 crore, both of which were the highest in recent times.

From a technical standpoint, the stock is currently in a bullish range and has shown a significant improvement since April 24, 2024, generating a return of 5.76%. Multiple indicators such as MACD, Bollinger Band, KST, and OBV are all pointing towards a bullish trend for the stock.

Moreover, with a ROE of 15.8 and a price to book value of 3.8, the stock is currently trading at an attractive valuation. It is also worth noting that the stock is trading at a fair value compared to its historical valuations.

In the past year, Tide Water Oil Co (I) has not only generated a return of 108.86%, but it has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months. This market-beating performance in both the long term and near term makes it a promising investment option.

However, as with any investment, there are risks involved. One of the potential risks for Tide Water Oil Co (I) is its poor long-term growth, with net sales growing at an annual rate of 8.62% and operating profit at 1.07% over the last 5 years.

Another risk to consider is the low stake of only 0.15% held by domestic mutual funds in the company. This could indicate that they are not comfortable with the current price or the business itself, as they have the capability to conduct in-depth research on companies.

In conclusion, Tide Water Oil Co (I) has shown strong financials, positive technical trends, and market-beating performance, making it a 'Buy' according to MarketsMOJO. However, investors should also consider the potential risks involved before making any investment decisions.