Competent Automobiles Company Shows Strong Growth and Attractive Valuation, Upgraded to 'Buy' by MarketsMOJO

Competent Automobiles Company, a microcap trading company, has recently caught the attention of investors and analysts. MarketsMOJO has upgraded its stock call to 'Buy' on 2024-06-11, citing positive results in March 2024. The company has shown a growth of 20.07% in net sales in the first half of the year, with the highest operating profit to interest ratio of 4.30 times and PBDIT of Rs 24.75 cr.
The stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on 10-Jun-24. Multiple factors such as MACD, Bollinger Band, KST, and DOW are also indicating a bullish trend for the stock.

In terms of valuation, the company has an attractive ROCE of 10.7 and a 1.1 enterprise value to capital employed ratio. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 132.89%, while its profits have risen by 12.4%. The PEG ratio of the company is 1.1, indicating a good potential for growth.

The majority shareholders of Competent Automobiles Company are its promoters, which is a positive sign for investors. The company has also shown a market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, there are some risks associated with investing in this company. The long-term growth may be poor as the net sales and operating profit have only grown at an annual rate of 11.29% and 9.41%, respectively, over the last 5 years.

Overall, Competent Automobiles Company seems to be a promising investment opportunity with its recent positive results, bullish trend, attractive valuation, and market-beating performance. Investors should keep an eye on the company's long-term growth potential and make an informed decision.