Innovative Tech Pack Receives 'Hold' Rating from MarketsMOJO After Positive Q3 Results

Innovative Tech Pack, a microcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO on February 1, 2024. This upgrade comes after the company reported positive results in the third quarter of 2023, with its PAT (Q) reaching a high of Rs 1.29 crore and PBDIT (Q) reaching a high of Rs 4.08 crore. Additionally, the company's operating profit to net sales (Q) also reached a record high of 11.04%.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on February 1, 2024. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish outlook for the stock.

The majority shareholders of Innovative Tech Pack are its promoters, which can be seen as a positive sign for the company. Furthermore, the stock has outperformed the market (BSE 500) with a return of 67.30% in the last year, compared to the market's return of 32.27%.

However, the company's long-term fundamental strength is weak, with a -26.76% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 0.69. Additionally, the company's return on equity (avg) is at a low of 4.17%, indicating low profitability per unit of shareholders' funds.

In terms of valuation, Innovative Tech Pack has an expensive valuation with a 1.6 enterprise value to capital employed and a PEG ratio of 0.3. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite its weak long-term fundamentals, the stock has shown strong growth in profits in the past year, with a 146.1% increase. Investors may want to hold onto the stock for now and monitor its performance closely.