Caprihans India Receives 'Hold' Rating from MarketsMOJO

Caprihans India, a microcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO on October 19, 2023. This upgrade comes as the company has shown healthy long-term growth with an annual operating profit growth rate of 31.78%.
Technically, the stock is currently in a Mildly Bullish range, with multiple factors such as MACD, Bollinger Band, KST, and DOW indicating a bullish trend. Additionally, with a ROCE of 1, the stock is attractively valued with an enterprise value to capital employed ratio of 0.8. This means that the stock is trading at a discount compared to its average historical valuations.

However, in the past year, while the stock has generated a return of 71.33%, its profits have fallen by -1639%. This could be a cause for concern for investors. It is also worth noting that the majority shareholders of Caprihans India are the promoters.

Despite the recent market-beating performance of the stock, with a return of 71.33% in the last year compared to the market (BSE 500) return of 16.72%, the company's financial results for the quarter ending September 2023 were flat. The PBT LESS OI(Q) at Rs -12.42 crore has fallen by -165.7%, while the PAT(Q) at Rs -7.79 crore has fallen by -290.1%. The operating cash flow for the year has also been the lowest at Rs -52.93 crore.

Overall, while Caprihans India has shown potential for long-term growth, the recent financial results and falling profits may be a cause for concern for investors. It is advisable to hold the stock for now and monitor its performance in the coming quarters.