National Fittings Downgraded to 'Hold' by MarketsMOJO, But Shows Strong Financial Performance

National Fittings, a microcap company in the castings/forgings industry, has recently been downgraded to a 'Hold' by MarketsMOJO on July 1, 2024. This decision was based on various factors, including the company's strong ability to service debt with a low Debt to EBITDA ratio of 1.34 times.
In terms of financial performance, National Fittings has shown promising numbers with its highest net sales of Rs 21.64 crore, highest PAT of Rs 1.92 crore, and highest EPS of Rs 2.11 in the last quarter. The stock is also technically in a Mildly Bullish range, with multiple bullish indicators such as MACD, Bollinger Band, and KST.

Moreover, the company has a very attractive valuation with a ROE of 9.9 and a price to book value of 2.1. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 53.25%, while its profits have increased by 33.3%. The PEG ratio of the company is also at a favorable 0.6.

However, it is worth noting that the majority of the shareholders are non-institutional, which may pose some risks. Additionally, National Fittings has shown poor long-term growth with only a 5.66% annual growth rate in net sales and 2.21% in operating profit over the last 5 years.

Despite these factors, the stock has a market-beating performance in both the long term and near term. It has outperformed BSE 500 in the last 3 years, 1 year, and 3 months, making it a potential hold for investors.