International Conveyors Receives 'Hold' Rating from MarketsMOJO, Shows Potential for Long-Term Growth Despite Concerns

International Conveyors, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO on October 8, 2024. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 76.65%. Additionally, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing bullish signals.
However, there are some concerns regarding the company's ability to service its debt, as it has a high debt to EBITDA ratio of 3.06 times. Furthermore, the company's return on equity (avg) is at a low 9.21%, indicating low profitability per unit of shareholders' funds.

In terms of financial performance, the company's results for June 2024 were flat, with net sales growing at a negative rate of 27.48%. The company's interest expenses were also at a high of Rs 2.75 crore, while its non-operating income accounted for 94.47% of its profit before tax.

The stock is currently trading at a premium, with a price to book value of 2.2 and a PEG ratio of 0.1. However, it is still trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 13.94%, while its profits have risen by 123.6%.

It is worth noting that despite its size, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the current price or the business itself, as they have the capability to conduct in-depth research on companies.

In the last year, the stock has underperformed the market, with a return of 13.94% compared to the market's (BSE 500) return of 35.27%. Overall, while International Conveyors shows potential for long-term growth, investors should carefully consider the company's financial performance and debt levels before making any investment decisions.