MarketsMOJO Upgrades Hexa Tradex to 'Hold' Based on Strong Growth and Bullish Trend

MarketsMOJO has recently upgraded its stock call on Hexa Tradex to 'Hold' on October 14, 2024. This decision was based on the company's healthy long-term growth, technically bullish trend, and market-beating performance.
Hexa Tradex has shown a strong annual growth rate of 153.31% in net sales and 67.24% in operating profit. The stock is currently in a bullish range and has shown improvement in its technical trend. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are also indicating a bullish trend for the stock.

In terms of performance, Hexa Tradex has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. It has also generated a return of 103.98% in the last 1 year. However, the company has a high debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt.

Moreover, the company's profitability per unit of shareholders' funds is low, with a return on equity of 0.10%. In Jun'2024, the company declared negative results after two consecutive positive quarters. Its net sales and PAT have shown a decline of -57.37% and -51.31%, respectively, in the last 9 months.

With a ROE of 2.4, Hexa Tradex is currently trading at a very expensive valuation with a price to book value of 0.4. However, it is still trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 103.98%, its profits have fallen by -34.5%.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0.1% of the company. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

Overall, MarketsMOJO's upgrade to a 'Hold' call on Hexa Tradex is based on its positive long-term growth and bullish technical trend, but investors should also consider the company's high debt and low profitability.