Orient Press Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend and Attractive Valuation

Orient Press, a microcap company in the packaging industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a technically bullish trend and has improved from a mildly bullish status on August 7, 2024. The company's stock has also shown multiple bullish factors such as MACD, Bollinger Band, and KST.
One of the main reasons for the 'Hold' rating is the company's attractive valuation with a ROCE of 2.5 and an enterprise value to capital employed ratio of 1.3. Additionally, the stock is currently trading at a discount compared to its historical valuations. Over the past year, the stock has generated a return of 49.85%, while its profits have increased by 68.3%.

The majority shareholders of Orient Press are the promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 49.85% in the last year, compared to the market's return of 34.26%.

However, the company's long-term fundamental strength is weak, with a -21.93% CAGR growth in operating profits over the last 5 years. The company also has a high debt to EBITDA ratio of 17.39 times, indicating a low ability to service debt. Additionally, the company has reported losses, resulting in a negative ROE.

In the latest quarter, Orient Press reported flat results, with non-operating income accounting for 118.60% of the profit before tax. Overall, while the stock has shown a bullish trend and attractive valuation, the company's weak long-term fundamentals and high debt raise some concerns. Investors may want to hold onto the stock for now and monitor its performance closely.