SAL Automotive Receives 'Hold' Rating from MarketsMOJO, Shows Technical Improvement and Attractive Valuation

SAL Automotive, a microcap company in the auto ancillary industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a technical improvement, moving from a sideways trend to a mildly bullish one on June 11, 2024.
One of the key factors contributing to this upgrade is the company's attractive valuation, with a ROCE of 13.9 and an enterprise value to capital employed ratio of 2.4. Additionally, the stock is currently trading at a discount compared to its historical valuations.

While the stock has generated a return of 6.98% in the past year, its profits have risen by 8.5%. However, the company's long-term growth has been poor, with operating profit growing at an annual rate of only 14.60% over the last 5 years.

In March 2024, SAL Automotive declared negative results after 7 consecutive positive quarters. The company's PAT (HY) has also seen a decline of 48.45%, with the lowest net sales (Q) at Rs 60.78 crore.

Despite these challenges, the majority shareholders of SAL Automotive are promoters, which could indicate their confidence in the company's future prospects. However, it is important to note that this article is based on fact-based information and does not include any external data or sources. As always, it is recommended to do your own research and consult with a financial advisor before making any investment decisions.