Winsome Textile Industries Receives 'Buy' Rating from MarketsMOJO, Shows Impressive Growth in June Quarter.
Winsome Textile Industries, a microcap company in the textile industry, has received a 'Buy' rating from MarketsMojo on October 8th, 2024. The company's Profit After Tax (HY) has grown by 31.40% in the June 2024 quarter, with high Net Sales and PBDIT. The stock is currently in a bullish trend and has outperformed the BSE 500 in the past year. However, there are risks such as high debt and low long-term growth.
Winsome Textile Industries, a microcap company in the textile industry, has recently received a 'Buy' rating from MarketsMOJO on October 8th, 2024. This upgrade is based on the positive results the company has shown in the June 2024 quarter. The company's Profit After Tax (HY) has grown by an impressive 31.40%, with the highest Net Sales (Q) at Rs 220.88 crore and PBDIT (Q) at Rs 27.54 crore.The stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on October 8th, 2024. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are all indicating a bullish trend for the stock. Additionally, with a ROCE of 11.4, the company has a very attractive valuation with a 0.8 Enterprise value to Capital Employed. The stock is also trading at a discount compared to its average historical valuations.
In the past year, Winsome Textile Industries has generated a return of 46.75%, outperforming the BSE 500. This strong performance is expected to continue in the long term as well, making it a market-beating stock. The company also has high institutional holdings at 29.93%, indicating that these investors have better capabilities and resources to analyze the fundamentals of the company.
However, there are some risks associated with investing in Winsome Textile Industries. The company has a high Debt to EBITDA ratio of 3.14 times, which may affect its ability to service debt. Additionally, the company's Return on Equity (avg) is at 9.08%, indicating low profitability per unit of shareholders' funds. Furthermore, the company has shown poor long-term growth with Net Sales growing at an annual rate of 3.45% and Operating profit at 5.23% over the last 5 years.
Overall, with its strong performance and attractive valuation, Winsome Textile Industries is a promising stock to consider for investment. However, investors should also be aware of the risks associated with the company before making any investment decisions.
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