Uma Exports Receives 'Hold' Rating from MarketsMOJO After Positive Quarter Results

Uma Exports, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on September 11, 2024. This upgrade comes after the company reported positive results in the quarter ending June 2024. The company's PBT (profit before tax) less OI (operating income) has grown by an impressive 184.0%, while its PAT (profit after tax) has grown by 147.6%.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on September 11, 2024. Multiple factors, such as MACD, KST, and OBV, indicate a bullish trend for the stock.

Institutional investors have also shown increased interest in the company, with a 0.96% increase in their stake over the previous quarter. This is a positive sign as institutional investors have better resources and capabilities to analyze a company's fundamentals compared to retail investors.

Uma Exports has also outperformed the market (BSE 500) with a return of 165.14% in the last year, compared to the market's return of 32.75%.

However, the company's long-term fundamental strength is weak, with a -29.52% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 3.93 times, indicating a low ability to service debt. The company's return on equity (average) is also low at 9.39%, indicating low profitability per unit of shareholders' funds.

With a ROCE (return on capital employed) of 6.1, the stock is currently trading at an expensive valuation with an enterprise value to capital employed ratio of 1.9. However, it is currently trading at a discount compared to its average historical valuations.

Despite the stock's impressive return in the past year, its profits have fallen by -33.5%. This could be a cause for concern for investors and may have influenced the 'Hold' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions regarding Uma Exports.