MarketsMOJO Upgrades MIC Electronics to 'Hold' Based on Positive Results and Technical Trends

MarketsMOJO has recently upgraded its stock call on MIC Electronics to 'Hold' based on the company's positive financial results and technical indicators. The company has shown a growth in net profit of 58.87% in the last quarter, and has consistently declared positive results for the past 5 quarters. With a higher PAT and ROCE, the company's net sales have also grown by 52.56%. The stock is currently in a bullish range and has shown improvement in technical trends.
In terms of returns, MIC Electronics has outperformed the BSE 500 index in the last 3 years, with a 265.58% return in the last year alone. However, the company's long-term fundamental strength is weak, with a CAGR growth in net sales of only 67.34% in the last 5 years. Additionally, the company has a high debt to EBITDA ratio and a low return on equity, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at a premium compared to its historical valuations and has a high ROCE of 6.7. This, along with a PEG ratio of 0.1, suggests that the stock may be overvalued. Furthermore, there has been a decrease in promoter confidence as they have reduced their stake in the company by -1.12% in the previous quarter.

Overall, while MIC Electronics has shown positive financial results and technical indicators, the company's weak long-term fundamental strength and decreasing promoter confidence may warrant a 'Hold' rating for the stock. Investors should carefully consider these factors before making any investment decisions.