National Fittings Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability

National Fittings, a microcap company in the castings/forgings industry, has recently received a 'Hold' rating from MarketsMOJO on November 19, 2024. This upgrade is based on the company's strong ability to service its debt, with a low Debt to EBITDA ratio of 1.34 times.
Technically, the stock is currently in a Mildly Bullish range and has shown improvement from a Sideways trend on November 19, 2024. One key technical factor, the Bollinger Band, has been Bullish since the same date.

Attractive valuation is another factor contributing to the 'Hold' rating. With a ROE of 6.6 and a Price to Book Value of 1.8, the stock is trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 5.82% in the past year, its profits have fallen by -15.8%.

Majority shareholders of National Fittings are non-institutional investors.

On the downside, the company has shown poor long-term growth with Net Sales growing at an annual rate of 6.08% and Operating profit at 2.21% over the last 5 years. In the recent quarter, the company's results have been negative, with PAT(HY) at Rs 1.24 crore showing a decline of -54.61%, PBT LESS OI(Q) at Rs 0.35 crore falling by -84.65%, and NET SALES(Q) at Rs 18.68 crore decreasing by -10.62%.

In the last 1 year, National Fittings has underperformed the market, generating a return of 5.82% compared to the market (BSE 500) returns of 24.46%. While the company's ability to service its debt and attractive valuation are positive factors, the poor long-term growth and recent negative results may have contributed to the 'Hold' rating. Investors should carefully consider these factors before making any investment decisions.