Rexnord Electronics & Controls Receives 'Hold' Rating from MarketsMOJO, Indicating Stable Financial Position and Potential for Growth

Rexnord Electronics & Controls, a microcap company in the consumer durables industry, has recently received a 'Hold' rating from MarketsMOJO on February 13, 2024. This upgrade comes as the company has shown a low Debt to Equity ratio of 0.05 times, indicating a stable financial position.
The stock is currently in a Mildly Bullish range, with technical trends improving from Sideways on February 9, 2024. Since then, the stock has generated a return of -5.35%. Additionally, the KST and OBV technical factors are also Bullish, further supporting the 'Hold' rating.

At a Fair valuation with a Price to Book Value of 2.1 and a ROE of 12.4, the stock is trading at a premium compared to its historical valuations. However, despite a return of 28.81% in the past year, the company's profits have fallen by -16.7%.

The majority shareholders of Rexnord Electronics & Controls are the promoters, indicating their confidence in the company's future prospects. However, the company has shown poor long-term growth with Net Sales growing at an annual rate of 9.47% and Operating profit at 17.97% over the last 5 years.

In the latest quarter, the company's results were flat, with the ROCE(HY) at its lowest at 15.14% and PBT LESS OI(Q) at Rs 1.33 crore. Overall, while the company's financials may not be impressive, the 'Hold' rating suggests that it may still have potential for growth in the future.