Machino Plastics Receives 'Hold' Rating from MarketsMOJO, Technical Trend Improves and Stock Generates 17.83% Return.

Machino Plastics, a microcap company in the auto ancillary industry, has recently received a 'Hold' rating from MarketsMOJO on January 8, 2024. This upgrade is based on the company's technical trend, which has improved from Mildly Bullish to Bullish since December 11, 2023, resulting in a 17.83% return. Additionally, the MACD and KST technical factors are also showing a Bullish trend.
The company's ROCE of 4.9 and attractive valuation with a 1.6 Enterprise value to Capital Employed ratio make it a promising investment option. Moreover, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 87.04%, while its profits have increased by 49.6%. The PEG ratio of the company stands at 1.4.

The majority shareholders of Machino Plastics are its promoters, which is a positive sign for investors. The company has a track record of market-beating performance in the long term as well as the near term. In addition to its impressive returns in the past year, the stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with a -0.98% CAGR growth in Operating Profits over the last 5 years. It also has a high Debt to EBITDA ratio of 4.71 times, indicating a low ability to service debt. The Return on Equity (avg) of 4.34% also signifies low profitability per unit of shareholders' funds.

In the latest quarter, the company's results were flat, which could be a cause for concern for investors. Overall, while Machino Plastics shows potential for growth and has performed well in the past year, it is important to consider its weak long-term fundamentals before making any investment decisions.