Zuari Industries Receives Upgraded Stock Call from MarketsMOJO, Showing Bullish Signals and Attractive Valuations

Zuari Industries, a smallcap trading company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' due to various bullish factors.
Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on October 21, 2024. The MACD, Bollinger Band, and KST indicators are all showing bullish signals.

In terms of valuation, the stock has a very attractive ROCE of 0.4 and an enterprise value to capital employed ratio of 0.5. It is also trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 144.19%, while its profits have increased by 165.8%. The PEG ratio of the company is also at a low 0.4.

Zuari Industries has also shown market-beating performance in the long term as well as the near term. It has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months.

However, the company does have some weak fundamental strengths in the long term. Its average ROCE is only 0.13% and its net sales have only grown at an annual rate of 3.02% in the last 5 years. The operating profit has also only grown at a rate of 30.05%. Additionally, the company has a high debt to EBITDA ratio of 118.94 times, indicating a low ability to service debt.

In the latest quarter, the company's results were flat with a fall in PAT of -23873.3%. This could be a cause for concern for investors.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could mean that they are not comfortable with the current price or the business of the company. Domestic mutual funds have the capability to conduct in-depth research on companies, so their small stake could be a red flag for potential investors.

Overall, while Zuari Industries has shown strong performance in the past year, its weak long term fundamentals and lack of interest from domestic mutual funds make it a 'Hold' for now. Investors should keep an eye on the company's future performance and conduct their own research before making any investment decisions.