Atlantaa Receives 'Hold' Rating from MarketsMOJO After Positive Growth and Bullish Trend

Atlantaa, a microcap company in the capital goods industry, has recently received a 'Hold' rating from MarketsMOJO on September 2, 2024. This upgrade comes after the company reported positive results in June 2024, with a significant growth of 900.8% in its PAT(Q) at Rs 13.21 crore. Additionally, its NET SALES(HY) have also increased to Rs 106.78 crore and its ROCE(HY) is at its highest at 22.15%.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on September 2, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

The majority shareholders of Atlantaa are its promoters, which is a positive sign for investors. The company has also shown market-beating performance in both the long term and near term, with a return of 272.81% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, there are some weak fundamental strengths for the company. It has a -22.60% CAGR growth in Operating Profits over the last 5 years, indicating a weak long-term performance. The company also has a high Debt to EBITDA ratio of 16.68 times, which may affect its ability to service debt. Additionally, its Return on Equity (avg) is at a low 4.28%, indicating low profitability per unit of shareholders' funds.

In terms of valuation, Atlantaa has a ROCE of 20.8, which is considered expensive with a 1.8 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations. Despite its strong return of 272.81% in the past year, its profits have only increased by 422.7%, resulting in a PEG ratio of 0.

Overall, while Atlantaa has shown positive growth and a bullish trend, its weak long-term fundamental strength and high debt may be a cause for concern. Investors may want to hold onto the stock for now and monitor its performance closely.