GP Petroleums Receives Upgraded Stock Call from MarketsMOJO, Indicators Show Bullish Trend and Attractive Valuation for Investors

GP Petroleums, a microcap company in the lubricants industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on 9th April 2024, with multiple bullish factors contributing to this decision.
One of the main reasons for the upgrade is the stock's technical trend, which has improved from mildly bullish to bullish. This is supported by indicators such as MACD, Bollinger Band, and KST. Additionally, the stock is currently trading at a discount compared to its average historical valuations, making it an attractive option for investors.

Furthermore, GP Petroleums has a return on capital employed (ROCE) of 8.9, indicating an attractive valuation with a 1.2 enterprise value to capital employed. This, along with the stock's market-beating performance in the long term, makes it a promising investment option.

However, the company's long-term fundamental strength is weak, with an average ROCE of 9.18%. This is reflected in its poor long-term growth, with net sales and operating profit only growing at a rate of 1.13% and 0.92%, respectively, over the last 5 years.

In terms of recent performance, GP Petroleums had flat results in December 2023, with the lowest net sales of Rs 154.96 crore. Despite this, the company's majority shareholders are promoters, indicating their confidence in the company's potential.

Overall, while GP Petroleums may not have a strong long-term growth outlook, its current technical trend and attractive valuation make it a hold for investors. With a market-beating performance in the near term and majority promoters as shareholders, the company shows potential for growth in the future.