Tilaknagar Industries Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth and Technical Indicators

Tilaknagar Industries, a smallcap company in the breweries industry, has recently received a 'Hold' rating from MarketsMOJO on 2024-05-21. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 43.83%.
Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Mildly Bearish on 18-May-24. It has also generated a return of -1.15% since then. The MACD and Bollinger Band technical factors are also Bullish, indicating a positive outlook for the stock.

Over the last 3 years, Tilaknagar Industries has consistently outperformed the BSE 500, with a return of 58.65%. However, in the recent quarter of Dec 23, the company's PBT LESS OI(Q) has fallen by -52.70% and PAT(Q) has fallen by -42.3%. Its CASH AND CASH EQUIVALENTS(HY) is also at its lowest at Rs 40.07 cr.

With a ROCE of 19.4, the company has an expensive valuation with a 6.7 Enterprise value to Capital Employed. However, it is currently trading at a discount compared to its average historical valuations. The PEG ratio of the company is 1.9, indicating a fair valuation.

Interestingly, despite its size, domestic mutual funds hold only 0.13% of the company. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

Overall, while Tilaknagar Industries has shown strong growth and technical indicators, its recent financial results and valuation may warrant a 'Hold' rating for now. Investors should keep an eye on any changes in the company's performance and valuation before making any investment decisions.