Uniroyal Industries Receives 'Hold' Rating from MarketsMOJO, Shows Strong Performance in Last Quarter.

Uniroyal Industries, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong performance in the last quarter, with its PBDIT(Q) reaching a high of Rs 2.54 crore and its operating profit to net sales(Q) at 10.62%. Additionally, its PBT less OI(Q) also saw a significant increase, reaching Rs 1.50 crore.
Technically, the stock is currently in a bullish range and has shown improvement since February 14, 2024, generating a return of 19.98%. This is supported by various factors such as MACD, Bollinger Band, and KST.

The majority shareholders of Uniroyal Industries are its promoters, indicating their confidence in the company's future prospects. In the long term, the stock has outperformed the BSE 500 index, generating a return of 81.76% 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 5 years. It also has a high debt to EBITDA ratio of 4.66 times, indicating a low ability to service debt. The return on equity (avg) is also low at 4.17%, indicating low profitability per unit of shareholders' funds.

Moreover, the stock is currently trading at a very expensive valuation with a 1.1 enterprise value to capital employed. However, it is still trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 81.76%, its profits have only risen by 47%, resulting in a PEG ratio of 0.1.

In conclusion, while Uniroyal Industries has shown strong performance in the last quarter and has potential for future growth, its long-term fundamental strength and high valuation should be considered before making any investment decisions.