Mahaveer Infoway Upgraded to 'Hold' Rating by MarketsMOJO, Positive Results and Bullish Trend Indicate Potential Growth

Mahaveer Infoway, a microcap IT software company, has recently been upgraded to a 'Hold' rating by MarketsMOJO on January 23, 2024. This upgrade is based on the company's positive results in September 2023, with its ROCE (HY) reaching a high of 12.70%, INVENTORY TURNOVER RATIO (HY) at 8.49 times, and DEBTORS TURNOVER RATIO (HY) at 7.49 times.
Technically, the stock is currently in a Mildly Bullish range and has shown improvement from a Sideways trend on January 23, 2024. Multiple factors, such as RSI, MACD, Bollinger Band, and KST, indicate a bullish trend for the stock.

With a ROCE of 11.5, Mahaveer Infoway has a Very Attractive valuation with a 1 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. However, over the past year, the stock has generated a return of -4.38%, while its profits have fallen by -50%.

The majority shareholders of Mahaveer Infoway are Non-Institutional investors. The company's long-term fundamental strength is weak, with a -27.58% CAGR growth in Net Sales over the last 5 years. Additionally, its ability to service its debt is poor, with a low EBIT to Interest (avg) ratio of 0.04. The company has also shown low profitability per unit of shareholders' funds, with a Return on Equity (avg) of 1.09%.

In the last 1 year, Mahaveer Infoway has underperformed the market, with negative returns of -4.38%, while the market (BSE 500) has generated returns of 23.79%. This indicates that the stock has not been able to keep up with the market's performance.