MarketsMOJO Upgrades XT Global Infotech to 'Hold' Based on Strong Financials and Bullish Trends

On June 25, 2024, MarketsMOJO upgraded its stock call on XT Global Infotech to 'Hold'. This decision was based on several factors, including the company's low Debt to Equity ratio of 0.32 times, indicating a healthy financial position.

In terms of long-term growth, XT Global Infotech has shown promising results with an annual growth rate of 6.26% in Net Sales and a significant increase of 104.97% in Operating profit. The stock is also currently in a Mildly Bullish range, with technical trends improving from Sideways on June 25, 2024. Additionally, multiple factors such as Bollinger Band, KST, and OBV are all indicating a Bullish trend for the stock.

With a ROCE of 7.2, XT Global Infotech is considered to have an attractive valuation, with an Enterprise value to Capital Employed ratio of 2.9. Furthermore, the stock is currently trading at a discount compared to its average historical valuations. However, it is worth noting that despite generating a return of 4.50% in the past year, the company's profits have fallen by -25.9%.

In the latest quarter, XT Global Infotech reported negative results, with a -73.8% decrease in PAT(Q) at Rs 0.89 crore and a record low ROCE(HY) of 8.69%. The company's DEBTORS TURNOVER RATIO(HY) also saw a decline, reaching its lowest point at 3.35 times.

Despite being a microcap company, domestic mutual funds hold only 0.01% of XT Global Infotech's shares. This could be due to their ability to conduct in-depth research on companies, and their small stake may indicate that they are not comfortable with the current price or the business.

In the last year, XT Global Infotech has underperformed the market, with a return of 4.50% compared to the market's (BSE 500) return of 39.00%. Investors should carefully consider these factors before making any investment decisions regarding XT Global Infotech's stock.