MarketsMOJO Upgrades Solid Stone Company to 'Hold' Rating Based on Technical Factors and Attractive Valuation

Solid Stone Company, a microcap company in the ceramics and allied industry, has recently received a 'Hold' rating from MarketsMOJO on February 1, 2024. This upgrade is based on various technical factors, including a bullish trend and positive indicators such as MACD, Bollinger Band, and OBV.
One of the key reasons for the 'Hold' rating is the company's attractive valuation, with a ROCE of 8.9 and an enterprise value to capital employed ratio of 1. This indicates that the stock is currently trading at a discount compared to its historical valuations. Additionally, while the stock has generated a negative return of -1.00% in the past year, its profits have increased by 89%, resulting in a PEG ratio of 0.

However, there are some concerns regarding the company's long-term fundamental strength. Over the last 5 years, the company has seen a -7.34% CAGR growth in net sales, indicating weak performance. Furthermore, the company has a high debt to EBITDA ratio of 6.74 times, which may affect its ability to service debt. The return on equity (avg) of 1.86% also suggests low profitability per unit of shareholders' funds.

In terms of recent financial results, the company's performance has been flat in September 2023, with the lowest cash and cash equivalents of Rs 0.03 crore and net sales of Rs 5.80 crore. The PBDIT (profit before depreciation, interest, and taxes) was also at its lowest at Rs 1.07 crore.

Overall, while the stock has shown a below-par performance in the long term as well as the near term, it has been able to maintain majority shareholders as promoters. It is important to note that this article is based on fact-based information and does not include any external data or sources. Investors are advised to conduct their own research and analysis before making any investment decisions.