MarketsMOJO Upgrades Asian Granito India to 'Hold' Rating Amid Bullish Trend and Strong Performance

Asian Granito India, a leading player in the ceramics and allied industry, has recently received a 'Hold' rating from MarketsMOJO on August 13, 2024. This upgrade comes as the stock has shown a bullish trend and has generated a return of 3.3% since August 9, 2024.

The technical trend for the stock has improved from Mildly Bullish to Bullish, with factors like MACD, Bollinger Band, KST, and OBV all pointing towards a positive outlook. Additionally, with a ROCE of 0.3, the stock is currently trading at a discount compared to its historical valuations, making it a very attractive option for investors.

Over the past year, Asian Granito India has outperformed the market (BSE 500) with a return of 63.77%, while its profits have also seen a significant increase of 89.1%. This market-beating performance is a testament to the company's strong fundamentals and growth potential.

However, the company's long-term fundamental strength is weak, with a -197.91% CAGR growth in operating profits over the last 5 years. Additionally, its ability to service its debt is also a concern, with a poor EBIT to Interest ratio of 1.51. The company's Return on Equity (avg) of 6.37% also indicates low profitability per unit of shareholders' funds.

In the latest quarter, the company's results have been flat, with the lowest operating cash flow of Rs -82.44 crore and a 38.02% increase in interest expenses. While these factors may raise some concerns, the overall outlook for Asian Granito India remains positive, making it a 'Hold' for now.