XPRO India Upgraded to 'Hold' by MarketsMOJO, Shows Healthy Long-Term Growth

XPRO India, a smallcap company in the plastic products industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's healthy long-term growth, with an annual operating profit growth rate of 45.12%. Additionally, XPRO India has declared positive results for the last three consecutive quarters, with its DPR (Y) at a high of 10.04%, CASH AND CASH EQUIVALENTS (HY) at Rs 321.07 crore, and NET SALES (Q) at Rs 138.53 crore.
Technically, the stock is in a mildly bullish range, with its technical trend improving from sideways on 27-Aug-24. Multiple factors, such as MACD, Bollinger Band, and KST, are also bullish for the stock.

However, there are some concerns regarding XPRO India's ability to service debt, as the company has a high Debt to EBITDA ratio of 2.87 times. This may affect its profitability and financial stability in the long run.

Moreover, with a ROE of 8.1, the stock is currently trading at a very expensive valuation, with a price to book value of 4.8. However, it is still trading at a discount compared to its average historical valuations.

In the past year, XPRO India's stock has generated a return of 28.46%, while its profits have only risen by 26.3%. This gives the company a PEG ratio of 12.9, which may indicate that the stock is overvalued.

It is also worth noting that despite its size, domestic mutual funds hold only 1.3% of XPRO India's stock. This could mean that they are not comfortable with the current price or the business itself, as domestic mutual funds have the capability to conduct in-depth research on companies.

In the last year, XPRO India's stock has underperformed the market, with a return of 28.46%, compared to the market's (BSE 500) return of 39.59%. This may be a cause for concern for potential investors.

Overall, while XPRO India has shown promising growth and positive results, there are also some red flags to consider before making any investment decisions. It is important to carefully analyze all aspects of the company before making any investment decisions.