Uniroyal Industries Receives 'Hold' Rating from MarketsMOJO, Shows Positive Financial Growth

Uniroyal Industries, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO. The company's financials have shown positive growth, with its PAT(HY) at Rs 0.81 cr and PBDIT(Q) at Rs 2.54 cr, both being the highest in recent quarters. The operating profit to net sales ratio has also seen a significant increase, reaching 10.62%.
Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on 05-Apr-24. Multiple factors such as MACD, Bollinger Band, KST, and DOW have contributed to the stock's bullish trend.

The majority shareholders of Uniroyal Industries are the promoters, indicating their confidence in the company's performance. The stock has consistently outperformed BSE 500 in the last three annual periods and has generated a return of 71.58% in the last year.

However, the company's long-term fundamental strength is weak, with a -34.43% CAGR growth in operating profits over the last five years. Additionally, the company has a high debt to EBITDA ratio of 4.66 times, indicating a low ability to service debt. The return on equity (avg) of 4.17% also signifies low profitability per unit of shareholders' funds.

Uniroyal Industries currently has a very expensive valuation with a 1.1 enterprise value to capital employed. However, the stock is trading at a discount compared to its average historical valuations. While the stock has generated a return of 71.58% in the past year, its profits have only increased by 47%, resulting in a low PEG ratio of 0.1.

In conclusion, MarketsMOJO has upgraded Uniroyal Industries to a 'Hold' rating, considering its positive financial growth and bullish technical trend. However, the company's weak long-term fundamental strength and expensive valuation should also be taken into consideration by investors.