Encode Packaging India Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Recent Quarter

Encode Packaging India, a microcap company in the printing and publishing industry, has recently received a 'Hold' rating from MarketsMOJO on April 15, 2024. This upgrade comes after the company reported positive results in December 2023, with its PBDIT(Q) reaching a high of Rs 0.20 crore, PBT LESS OI(Q) at Rs 0.12 crore, and PAT(Q) at Rs 0.12 crore.
The stock is currently in a bullish range, with its technical trend improving from mildly bullish on April 15, 2024. The Bollinger Band and OBV technical factors also indicate a bullish trend. With a ROE of 3.1, the stock is fairly valued with a price to book value of 1.2. It is currently trading at a discount compared to its average historical valuations. However, despite generating a return of 34.17% in the past year, the company's profits have fallen by -12%.

The majority shareholders of Encode Packaging India are non-institutional investors. The company's long-term fundamental strength is weak, with a -2.97% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also poor, with a low EBIT to Interest (avg) ratio of 0.03. Additionally, the company has a low Return on Equity (avg) of 0.93%, indicating low profitability per unit of shareholders' funds.

Overall, while Encode Packaging India has shown positive results in the recent quarter and is currently in a bullish trend, its long-term fundamental strength and profitability are weak. Investors may want to hold onto their stocks for now and monitor the company's performance in the future.