Bannari Amman Spinning Mills Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend

Bannari Amman Spinning Mills, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO. The stock has shown a bullish trend since January 9, 2024, with a return of -5.72%. This improvement in technical trend is supported by factors such as MACD, Bollinger Band, KST, and OBV.
The company's valuation is attractive with a ROCE of 1.1 and an enterprise value to capital employed ratio of 0.9. Additionally, the stock is currently trading at a discount compared to its historical valuations. However, in the past year, the stock has generated a return of -0.20%, while its profits have decreased by -329.8%.

The majority shareholders of Bannari Amman Spinning Mills are the promoters. However, the company's long-term fundamental strength is weak, with a -32.87% CAGR growth in operating profits over the last 5 years. The company also has a high debt to EBITDA ratio of 6.74 times, indicating a low ability to service debt. Furthermore, the company's return on equity (avg) is only 3.47%, indicating low profitability per unit of shareholders' funds.

In the latest quarter, the company's results were flat, with the lowest ROCE (HY) at 2.15%. Bannari Amman Spinning Mills has also consistently underperformed against the benchmark over the last 3 years. Despite generating a return of -0.20% in the last year, the stock has underperformed BSE 500 in each of the last 3 annual periods. Based on these factors, MarketsMOJO has upgraded the stock to a 'Hold' rating.