Competent Automobiles Company Receives 'Hold' Rating from MarketsMOJO, Records Impressive Growth in Net Sales and Operating Profit

Competent Automobiles Company, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on June 6, 2024. This downgrade comes after the company's positive results in March 2024, with a 20.07% growth in net sales and a record high operating profit to interest ratio of 4.30 times. Additionally, the company's PBDIT also reached a new high of Rs 24.75 crore.
Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and DOW indicating a bullish trend. Furthermore, with a ROCE of 10.7, the stock is attractively valued with a 1 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 120.84%, outperforming the BSE 500 index. However, its long-term growth has been poor, with net sales growing at an annual rate of 11.29% and operating profit at 9.41% over the last 5 years. The PEG ratio of the company stands at 1.1, indicating a balanced valuation.

The majority shareholders of Competent Automobiles Company are the promoters, who have been instrumental in the company's market-beating performance in the long term as well as the near term. With a strong track record and attractive valuation, the company remains a promising player in the trading industry. However, investors are advised to hold their positions for now and monitor the company's growth in the coming months.