Unison Metals Receives 'Hold' Rating from MarketsMOJO After Positive Quarterly Results

Unison Metals, a microcap company in the steel/sponge iron/pig iron industry, has recently received a 'Hold' rating from MarketsMOJO on September 9, 2024. This upgrade comes after the company reported positive results in June 2024, with a 26.66% growth in net sales and a 46.3% growth in PBT less OI (quarterly). Additionally, the company's PAT (quarterly) has also seen a significant increase of 47.2%.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on September 9, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

Attractive valuation is another positive aspect of Unison Metals, with a ROCE of 13.4 and an enterprise value to capital employed ratio of 1.1. The stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 7.31%, its profits have risen by 202%, resulting in a PEG ratio of 0.

The majority shareholders of Unison Metals are the promoters, which can be seen as a positive sign for the company's stability and growth potential.

However, the company does have some weak long-term fundamental strengths, with an average ROCE of 8.31% and a low growth rate in net sales and operating profit over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 5.17 times, indicating a low ability to service debt.

In the last year, Unison Metals has underperformed the market, with a return of only 7.31% compared to the market's (BSE 500) return of 33.83%. This could be a cause for concern for potential investors.

Overall, while Unison Metals has shown positive results in the recent quarter and has a bullish technical outlook, its weak long-term fundamentals and underperformance in the market may make it a risky investment. Investors are advised to carefully consider all factors before making any investment decisions.