Integra Engineering India Receives 'Hold' Rating from MarketsMOJO, Strong Debt Servicing and Bullish Technical Factors Support Upgrade

Integra Engineering India, a microcap company in the textile machinery industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on several factors that indicate a positive outlook for the company.
One of the key reasons for the 'Hold' rating is the company's strong ability to service its debt. With a low Debt to EBITDA ratio of 1.25 times, Integra Engineering India is in a good position to manage its debt obligations.

In addition, the stock is currently in a Mildly Bullish range and the technical trend has improved from Sideways on 18-Mar-24. The MACD and KST technical factors are also Bullish, further supporting the 'Hold' rating.

Integra Engineering India has also shown consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, the company's results for Dec 23 were flat, with a PAT(HY) of Rs 7.65 crore, which is a decrease of -35.88% compared to the previous year.

Despite this, the company has a ROCE of 28.6 and a PEG ratio of 7.3, indicating a very expensive valuation. However, the stock is currently trading at a discount compared to its average historical valuations.

It is worth noting that despite its small size, domestic mutual funds hold only 0.53% of the company. This could suggest that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while Integra Engineering India has shown strong returns in the past year, its profits have only increased by 6.3%. This, along with the expensive valuation, may have led to the 'Hold' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.