XPRO India Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth but Raises Concerns

XPRO India, a smallcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO on January 15, 2024. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 45.12%. Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on January 15, 2024. The MACD and Bollinger Band technical factors also indicate a bullish trend. In terms of performance, XPRO India has outperformed the market (BSE 500) with a return of 60.86% in the last year, compared to the market's return of 28.66%. However, the company has a high debt to EBITDA ratio of 2.87 times, indicating a low ability to service debt. The company also reported negative results in September 2023, with a -25.38% decrease in PBT LESS OI(Q) and a -41.1% decrease in PAT(Q). The ROCE(HY) has also fallen to its lowest at 16.27%. With a ROE of 9.2, XPRO India currently has a very expensive valuation with a 7 price to book value. However, the stock is trading at a discount compared to its average historical valuations. It is worth noting that despite its size, domestic mutual funds hold only 0.09% of the company. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies. Overall, while XPRO India has shown strong growth and technical trends, its high debt and negative results raise some concerns. The company's expensive valuation and low interest from domestic mutual funds also suggest caution. Investors may want to hold onto their positions for now and monitor the company's performance closely.