Remi Edelstahl Tubulars Receives 'Hold' Rating from MarketsMOJO After Positive Q1 Results

Remi Edelstahl Tubulars, a microcap company in the iron and steel industry, has recently received a 'Hold' rating from MarketsMOJO on July 4th, 2024. This upgrade comes after the company reported positive results in the first quarter of 2024, with the highest net sales of Rs 40.33 crore and PBDIT of Rs 2.84 crore. The PBT less OI also saw a significant increase, reaching Rs 1.32 crore.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on July 4th, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

The majority shareholders of Remi Edelstahl Tubulars are the promoters, which can be seen as a positive sign for investors. The stock has also shown market-beating performance in the long term, generating a return of 125.19% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with an average ROCE of 2.68%. Additionally, the high debt to EBITDA ratio of 4.52 times indicates a low ability to service debt. The stock also has an expensive valuation with an ROCE of 3.2 and an enterprise value to capital employed ratio of 1.8.

Despite these concerns, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 125.19%, its profits have only risen by 123%, resulting in a low PEG ratio of 0.1.

Overall, the 'Hold' rating from MarketsMOJO suggests a neutral stance on Remi Edelstahl Tubulars. Investors should carefully consider the company's weak long-term fundamentals and high debt before making any investment decisions.