Shish Industries Receives 'Hold' Rating from MarketsMOJO, Showing Strong Management Efficiency and Growth Potential

Shish Industries, a microcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong management efficiency, ability to service debt, and healthy long-term growth.
One of the key factors contributing to the 'Hold' rating is Shish Industries' high ROCE (Return on Capital Employed) of 16.71%, indicating efficient management of capital. Additionally, the company has a low Debt to EBITDA ratio of 0.65 times, showcasing its strong ability to service debt.

Furthermore, Shish Industries has shown consistent growth in its net sales and operating profit, with an annual growth rate of 28.21% and 80.52%, respectively. The company has also declared positive results for the last three consecutive quarters, with significant growth in PBT LESS OI(Q) at Rs 2.73 crore (184.38%), PAT(Q) at Rs 2.62 crore (64.8%), and NET SALES(Q) at Rs 23.07 crore (31.01%).

On the technical front, the stock's trend is currently sideways, indicating no clear price momentum. However, the trend has improved from mildly bearish on 01-Aug-24 and has generated -3.76% returns since then.

Shish Industries' majority shareholders are its promoters, and with a ROCE of 14.3, the stock is currently trading at a very expensive valuation with a 6.7 Enterprise value to Capital Employed. However, it is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated negative returns of -11.41%, its profits have risen by 32.8%, resulting in a PEG ratio of 1.9. This indicates that the stock is undervalued and has the potential for future growth.

Despite underperforming the market (BSE 500) in the last year, which has generated returns of 32.89%, Shish Industries has shown promising growth potential and has received a 'Hold' rating from MarketsMOJO. Investors should keep an eye on this microcap company in the plastic products industry.