MarketsMOJO rates Acknit Industries as 'Hold' with improving outlook and attractive valuation

Acknit Industries, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO. The stock has shown a bullish trend and has improved from mildly bullish to a more positive outlook on September 11, 2024. This is due to multiple factors such as MACD, Bollinger Band, and OBV.
The company has an attractive valuation with a ROCE of 10.9 and an enterprise value to capital employed ratio of 1.1. It is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 36.61%, while its profits have increased by 9.5%. The PEG ratio of the company is 1.1.

The majority shareholders of Acknit Industries are the promoters, which shows their confidence in the company. The stock has consistently outperformed BSE 500 in the last 3 annual periods, making it a good investment option.

However, the company has weak long-term fundamental strength with an average ROCE of 9.09%. Its net sales have only grown by 6.12% annually over the last 5 years, indicating poor long-term growth. Additionally, the company has a high debt to EBITDA ratio of 4.33 times, which may affect its ability to service debt.

In the latest quarter, Jun 24, the company's results were flat. Overall, while Acknit Industries has shown a positive trend in the short term, its long-term fundamentals may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.