Hitech Corporation Receives 'Hold' Rating from MarketsMOJO, Technical Factors Indicate Bullish Trend

Hitech Corporation, a microcap company in the packaging industry, has recently received a 'Hold' rating from MarketsMOJO on September 5th, 2024. This upgrade is based on technical analysis, with the stock currently in a Mildly Bullish range and showing improvement from its previous Mildly Bearish trend. The Bollinger Band and KST technical factors also indicate a Bullish trend.
In terms of valuation, Hitech Corporation has an attractive ROCE of 13.4 and a low enterprise value to capital employed ratio of 1.4. The stock is currently trading at a discount compared to its historical valuations. However, over the past year, the stock has generated a negative return of -4.02%, while its profits have fallen by -33.3%.

The majority shareholders of Hitech Corporation are its promoters. However, the company has shown poor long-term growth with only a 3.21% annual growth in net sales and 12.50% in operating profit over the last 5 years. In the most recent quarter, the company reported negative results with its operating cash flow at its lowest at Rs 54.57 crore and a -49.6% decrease in PBT less OI(Q) at Rs 3.60 crore. The PAT(Q) also saw a decline of -37.0% at Rs 3.47 crore.

Overall, Hitech Corporation's performance has been below par in both the long-term and near-term. In addition to its negative returns in the last year, the stock has also underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. Investors should carefully consider these factors before making any investment decisions.