Uma Exports Receives 'Hold' Rating from MarketsMOJO After Positive Results in June 2024

Uma Exports, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on October 22, 2024. This upgrade comes after the company reported positive results in June 2024, with a growth of 184.0% in PBT LESS OI(Q) at Rs 6.17 crore and 147.6% in PAT(Q) at Rs 6.48 crore.
Technically, the stock is in a mildly bullish range and has multiple bullish factors such as KST, DOW, and OBV. Additionally, with a ROCE of 6.1, the stock is currently trading at an attractive valuation with a 1.5 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Over the past year, the stock has generated a return of 95.54%, outperforming the market (BSE 500) returns of 31.91%. This strong performance has also attracted the attention of institutional investors, who have increased their stake in the company by 0.96% in the previous quarter and now collectively hold 0.97% of the company. This is a positive sign as institutional investors have better resources and capabilities to analyze the fundamentals of companies.

However, the company does have some weak long-term fundamental strengths. It has shown a -29.52% CAGR growth in operating profits over the last 5 years and has a high Debt to EBITDA ratio of 3.93 times, indicating a low ability to service debt. Additionally, the company has a low Return on Equity (avg) of 9.39%, indicating low profitability per unit of shareholders' funds.

Overall, while Uma Exports has shown strong market-beating performance in the past year, its long-term fundamentals may be a cause for concern. Investors are advised to hold onto their stocks for now and keep an eye on the company's future performance.