Orient Bell Upgraded to 'Hold' by MarketsMOJO for Strong Debt Servicing Ability

Orient Bell ., a microcap company in the ceramics and allied industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.83 times.
Technically, the stock is currently in a Mildly Bullish range, with a positive trend since 06-Aug-24 and a return of -6.33% since then. The key technical factor, KST, has also been Bullish since 06 Aug 2024.

In terms of valuation, Orient Bell . is considered attractive with a ROCE of -0.1 and an Enterprise value to Capital Employed ratio of 1.7. The stock is currently trading at a discount compared to its average historical valuations. However, over the past year, the stock has generated a return of -21.77%, while its profits have fallen by -97.3%.

The company's long-term growth has been poor, with Net Sales growing at an annual rate of 3.54% and Operating profit at 6.06% over the last 5 years. Additionally, Orient Bell . has declared negative results for the last 7 consecutive quarters, with a -42.7% fall in PAT(Q) and a lowest ROCE(HY) of 0.87%. The DEBTORS TURNOVER RATIO(HY) is also at its lowest at 5.09 times.

Despite its small size, domestic mutual funds hold only 0% of Orient Bell . This could indicate that they are not comfortable with the company's current price or business, as they have the capability to conduct in-depth research.

Overall, Orient Bell . has shown below par performance in both the long term and near term. Along with generating -21.77% returns in the last 1 year, the stock has also underperformed BSE 500 in the last 3 years, 1 year, and 3 months. Based on these factors, MarketsMOJO has upgraded the stock to a 'Hold'.