UFO Moviez India Receives 'Hold' Rating from MarketsMOJO After Positive Quarter Results

UFO Moviez India, a microcap company in the lifestyle industry, has recently received a 'Hold' rating from MarketsMOJO on July 29, 2024. This upgrade comes after the company declared very positive results for the quarter ending in March 2024, with a growth in operating profit of 53.51%. This marks the 10th consecutive quarter of positive results for the company.
The company's PBT LESS OI(Q) has grown at an impressive rate of 172.66%, while its PAT(Q) has seen a growth of 610.2%. Additionally, the company's ROCE(HY) is at its highest at 10.13%. These factors, along with a fair valuation with a 1.9 price to book value and a discount compared to its historical valuations, make the stock a 'Hold' for now.

Technically, the stock is in a mildly bullish range and has shown improvement from a mildly bearish trend on July 29, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also bullish for the stock.

In the past year, the stock has outperformed the market with a return of 67.27%, while its profits have risen by 230.7%. This is reflected in the company's low PEG ratio of 0.1, indicating a market-beating performance.

However, the company's long-term fundamental strength is weak with a -172.07% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also poor with a negative EBIT to interest ratio of -1.91. The company's return on equity is also low at 4.76%, indicating low profitability per unit of shareholders' funds.

Another concern for investors is that 26.15% of promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets.

Overall, while UFO Moviez India has shown strong performance in the past year, its long-term fundamentals and high promoter pledged shares are factors to consider before making any investment decisions. MarketsMOJO's 'Hold' rating reflects a neutral stance on the stock, based on its current performance and potential risks.