Hindustan Tin Works Downgraded to 'Sell' by MarketsMOJO, Poor Long-Term Growth and Negative Results Declared

Hindustan Tin Works, a microcap company in the packaging industry, has recently been downgraded to a 'Sell' by MarketsMOJO on June 20, 2024. This decision was based on the company's poor long-term growth, with net sales only growing at an annual rate of 4.51% and operating profit at 9.99% over the last 5 years.
In addition, the company has recently declared negative results in March 2024 after 1 consecutive positive quarters. The profit after tax has fallen by -24.5% to Rs 3.02 crore and the operating profit to interest ratio is at its lowest at 0.06 times, with interest at its highest at Rs 2.20 crore.

Technically, the stock is in a mildly bearish range and the technical trend has deteriorated from mildly bullish on June 20, 2024, generating a return of 7.13% since then. The MACD and KST technical factors are also bearish.

Furthermore, there has been a decrease in institutional investors' stake by -0.61% over the previous quarter, with institutional investors collectively holding 8.91% of the company. This suggests that these investors, who have better resources and capabilities to analyze company fundamentals, have also lost confidence in Hindustan Tin Works.

However, the company does have a very attractive valuation with a ROCE of 8.6 and an enterprise value to capital employed ratio of 0.9. It is also currently trading at a discount compared to its average historical valuations. Despite this, the stock has only seen a 3.3% increase in profits over the past year, resulting in a PEG ratio of 3.2.

Despite the recent downgrade, Hindustan Tin Works has still outperformed the market (BSE 500) with a return of 76.52% in the last year. This may be a positive sign for investors, but it is important to consider the company's overall performance and future prospects before making any investment decisions.