Linc Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability

Linc, a microcap company in the printing and stationery industry, has recently received a 'Hold' rating from MarketsMOJO on July 16, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.87 times.
Technically, the stock is currently in a Mildly Bullish range, with the technical trend improving from Mildly Bearish on July 16, 2024. Multiple factors, such as Bollinger Band, KST, and OBV, are also indicating a bullish trend for the stock.

Attractive valuation is another positive aspect for Linc, with a ROE of 19.3 and a 5.2 Price to Book Value. The stock is currently trading at a fair value compared to its average historical valuations. However, over the past year, the stock has generated a negative return of -7.99%, while its profits have also fallen by -8.8%.

One area of concern for Linc is its poor management efficiency, with a low ROE of 9.08%. This indicates low profitability per unit of shareholders' funds. Additionally, the company has shown poor long-term growth, with net sales growing at an annual rate of 6.46% over the last 5 years.

In the latest quarter, Linc's results have been flat, with PBT LESS OI(Q) at Rs 12.45 crore falling by -20.55% and PAT(Q) at Rs 11.45 crore falling by -7.1%.

Despite being a microcap company, domestic mutual funds hold only 0% of Linc's shares. This could signify that they are not comfortable with the company's current price or its business.

In the last year, Linc has underperformed the market, with the stock generating negative returns of -7.99%, while the market (BSE 500) has generated returns of 37.74%. This indicates that the stock has not been able to keep up with the overall market performance.

Overall, while Linc may have some positive aspects, such as its ability to service debt and attractive valuation, it also has some areas of concern, such as poor management efficiency and underperformance in the market. Investors may want to carefully consider these factors before making any investment decisions.