Tuni Textile Mills Receives 'Hold' Rating After Positive Q1 Results

Tuni Textile Mills, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in the quarter ending March 2024, with its net sales reaching a record high of Rs 25.90 crore and its PBDIT and PBT LESS OI also showing significant improvement.
Technically, the stock is currently in a Mildly Bullish range and has shown an improvement in its trend from Sideways on 24th June 2024. One key technical factor, the Bollinger Band, has been Bullish since the same date.

In terms of valuation, Tuni Textile Mills has an attractive ROCE of 3.3 and a low enterprise value to capital employed ratio of 1.5. It is also currently trading at a discount compared to its average historical valuations. However, the company's long-term fundamental strength is weak, with an average ROCE of 3.36% and poor growth in net sales and operating profit over the last 5 years.

Furthermore, Tuni Textile Mills has a high debt to EBITDA ratio of 7.44 times, indicating a low ability to service debt. In the last year, the stock has underperformed the market, generating a return of 12.80% compared to the market's return of 38.50%.

The majority shareholders of Tuni Textile Mills are non-institutional investors, and the company has not shown any significant interest from experts or investors. With this recent upgrade to a 'Hold' rating, investors may want to closely monitor the company's performance in the coming quarters before making any investment decisions.