Cravatex Receives 'Hold' Rating from MarketsMOJO

Cravatex, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and its technical indicators have improved since November 30, 2023.
The majority shareholders of Cravatex are its promoters, however, the company has a high debt to equity ratio of 2.79 times. This has resulted in poor long-term growth, with net sales declining by an annual rate of -22.90% and operating profit at -223.89% over the last 5 years. Additionally, the company has a low return on capital employed, indicating low profitability per unit of total capital.

In the latest quarter, the company's net sales have fallen by -66.29% and its operating profit to interest ratio is at a low of -27.13 times. The debt to equity ratio for the first half of the year is also at its highest at 0.00 times. Furthermore, the stock is considered risky due to its negative EBITDA and is currently trading below its average historical valuations.

In the past year, while the stock has generated a return of 2.44%, its profits have increased by 378.6%. However, it has underperformed the market (BSE 500) which has seen a return of 16.72%. With these factors in mind, MarketsMOJO has upgraded the stock to a 'Hold' rating. Investors should carefully consider the company's financials and market performance before making any investment decisions.