Igarashi Motors India Receives 'Buy' Rating from MarketsMOJO for Strong Debt Management and Positive Financial Results

Igarashi Motors India, a smallcap company in the auto ancillary industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, positive financial results, and bullish technical indicators.
One of the key reasons for the 'Buy' rating is the company's low Debt to EBITDA ratio of 1.10 times, indicating a strong ability to manage its debt. In addition, the company has shown a growth in Operating Profit of 27.62% and has declared positive results for the last two consecutive quarters. Its net sales have also grown at a rate of 26.38% and its PAT (profit after tax) is higher at Rs 15.95 crore. The company's ROCE (Return on Capital Employed) is also at its highest at 7.30%.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since November 18, 2024, generating a return of -1.6%. Multiple factors such as MACD, Bollinger Band, and OBV are also indicating a bullish trend for the stock.

In the long term, Igarashi Motors India has outperformed the BSE 500 index and has generated a return of 39.67% in the last year. However, there are some risks to consider, such as poor long term growth with an annual rate of -27.01% over the last 5 years. The company also has an expensive valuation with a 4.1 Enterprise value to Capital Employed and is currently trading at a discount compared to its historical valuations. Its PEG ratio is also at 1.1, indicating a slightly overvalued stock.

Another risk to consider is the low stake of domestic mutual funds in the company, at only 0.73%. This may suggest that they are not comfortable with the current price or the business, despite their capability to conduct in-depth research.

Overall, Igarashi Motors India has shown positive financial results and has received a 'Buy' rating from MarketsMOJO. However, investors should also consider the potential risks before making any investment decisions.