Tuni Textile Mills Receives 'Hold' Rating from MarketsMOJO 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 the highest net sales of Rs 25.90 crore and PBDIT of Rs 0.70 crore, Tuni Textile Mills has shown promising growth in its financials.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on 13th June 2024. The Bollinger Band, a key technical factor, has also been bullish since the same date. Additionally, with a ROCE of 3.3, the stock is attractively valued with a 1.5 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

However, Tuni Textile Mills has weak long-term fundamental strength with an average ROCE of 3.36%. Its growth has been poor over the last 5 years, with net sales growing at an annual rate of 10.21% and operating profit at 13.09%. The company also has a high debt to EBITDA ratio of 7.44 times, indicating a low ability to service debt.

In the last 1 year, Tuni Textile Mills has underperformed the market, generating a return of only 5.29% compared to the market (BSE 500) returns of 36.82%. The majority shareholders of the company are non-institutional investors.

Overall, while Tuni Textile Mills has shown positive growth in its recent financials, its long-term fundamentals and performance in the market may be a cause for concern. Investors are advised to hold their positions for now and monitor the company's progress closely.