Axtel Industries Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Performance

Axtel Industries, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO on January 15, 2024. This downgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times.
However, Axtel Industries has shown outstanding results in the last quarter of September 2023, with a growth in Net Profit of 155.25%. The company has also consistently declared positive results for the past 5 quarters. Its Operating Cash Flow is at its highest at Rs 30.14 Cr, while its Return on Capital Employed (ROCE) is also at its highest at 39.46%. Additionally, the company has a strong cash position with Cash and Cash Equivalents at Rs 13.35 cr.

Technically, the stock is in a Mildly Bullish range, with multiple factors such as MACD, Bollinger Band, KST, and DOW indicating a bullish trend. Axtel Industries has also outperformed the market (BSE 500) with a return of 157.50% in the last year, compared to the market's return of 28.66%.

However, with a ROE of 28.2, the stock is currently trading at a Very Expensive valuation with a Price to Book Value of 8.7. Despite this, the stock is still trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 157.50%, its profits have only risen by 139.5%, resulting in a low PEG ratio of 0.2.

It is worth noting that despite its size, domestic mutual funds hold only 0% of Axtel Industries. 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.