Advik Capital Receives 'Hold' Rating from MarketsMOJO, Technical Analysis Shows Bullish Trend

Advik Capital, a microcap company in the electric equipment industry, has recently received a 'Hold' rating from MarketsMOJO on February 1, 2024. This upgrade is based on technical analysis, with the stock currently in a Mildly Bullish range. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.
Despite having a fair valuation with a ROCE of 0.7 and a 1.9 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its historical valuations. In the past year, while the stock has only generated a return of 1.34%, its profits have increased by 23.8%.

The majority of the company's shareholders are non-institutional investors. However, the company's long-term fundamental strength is weak, with an average ROCE of 3.38%. Additionally, its ability to service its debt is also poor, with a low EBIT to Interest ratio of 1.38.

In the last quarter of 2023, the company's results were flat, with a significant decline in PBT LESS OI(Q) at Rs 1.18 crore, falling by 75.47%, and PAT(Q) at Rs 0.46 crore, falling by 87.5%. This has also led to the stock underperforming the market in the last year, with a return of only 1.34%, compared to the market's (BSE 500) return of 32.27%.

Overall, while the technical analysis shows a bullish trend for Advik Capital's stock, the company's weak long-term fundamental strength and recent decline in profits may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.