MarketsMOJO Upgrades Liberty Shoes to 'Hold' Rating Based on Technical Factors and Attractive Valuations

Liberty Shoes, a microcap company in the consumer durables industry, has recently received a 'Hold' rating from MarketsMOJO on November 14, 2024. This upgrade is based on technical factors such as the stock being in a Mildly Bullish range and its MACD and KST indicators also showing a Bullish trend.
In addition, the company's ROCE of 10.8 and Enterprise value to Capital Employed ratio of 3 make it a very attractive valuation. The stock is also currently trading at a discount compared to its historical valuations. Over the past year, the stock has generated a return of 71.76%, while its profits have increased by 99%. This results in a PEG ratio of 0.6, indicating a market-beating performance in both the long and short term.

However, the company has shown poor long-term growth with only a 1.89% annual growth in Net Sales and 2.33% in Operating profit over the last 5 years. In the latest quarter, the company's PAT(Q) has fallen by -45.4%, standing at Rs 2.19 crore.

It is worth noting that despite its small size, domestic mutual funds hold only 0% of the company. This could be due to their capability to conduct in-depth research on companies, and their small stake may indicate a lack of comfort with the company's current price or business.

Overall, while Liberty Shoes may have some positive technical indicators and attractive valuations, its poor long-term growth and recent decline in profits may warrant a 'Hold' rating for now. Investors should keep an eye on the company's performance in the future before making any investment decisions.