MarketsMOJO Upgrades Mohit Paper Mills to 'Hold' Rating, Technical Indicators Show Bullish Trend

Mohit Paper Mills, a microcap company in the paper and paper products industry, has recently received a 'Hold' rating from MarketsMOJO on February 5th, 2024. This upgrade is based on various technical indicators that show a bullish trend for the stock.
Since January 15th, 2024, the stock has shown a significant improvement in its technical trend, generating a return of 17.97%. This is supported by factors such as MACD, Bollinger Band, KST, DOW, and OBV, all of which are currently bullish for the stock.

In terms of valuation, Mohit Paper Mills has an attractive ROCE of 6.5 and a low enterprise value to capital employed ratio of 1.1. Additionally, the stock is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 84.35%, while its profits have increased by 74.8%. The PEG ratio of the company is also at a low 0.1.

The majority shareholders of Mohit Paper Mills are its promoters, which adds to the stability of the company. It has also consistently outperformed the BSE 500 index in the last three annual periods.

However, the company does have some weak fundamental strengths in the long term. Its average ROCE over the last 5 years is 5.27%, and its operating profit has only grown at an annual rate of 9.28%. Additionally, the company has a high debt to EBITDA ratio of 6.09 times, indicating a low ability to service debt.

In the latest quarter, Sep 23, Mohit Paper Mills reported flat results with the lowest net sales of Rs 35.10 crore, PBDIT of Rs 2.34 crore, and PBT less OI of Rs 0.42 crore. This could be a cause for concern for investors.

Overall, while Mohit Paper Mills has shown a bullish trend in the short term, its long term fundamentals may need improvement. Investors should carefully consider these factors before making any investment decisions.