Somi Conveyor Beltings Receives 'Hold' Rating from MarketsMOJO, Showing Bullish Trend and Attractive Valuation

Somi Conveyor Beltings, a microcap company in the rubber products industry, has recently received a 'Hold' rating from MarketsMOJO on May 10, 2024. This upgrade comes as the stock has shown a bullish trend and has generated a return of 17.71% since March 2, 2024.
The technical indicators for the stock, such as MACD, KST, and DOW, are all showing bullish signals. Additionally, with a ROCE of 7, the stock is currently trading at an attractive valuation with a 2 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 158.77%, outperforming the BSE 500 index. The company's profits have also seen a significant increase of 122%, resulting in a low PEG ratio of 0.3. The majority shareholders of the company are the promoters, indicating their confidence in the company's performance.

However, the company's long-term fundamental strength is weak, with an average ROCE of 7.05%. The net sales and operating profit have only grown at a rate of 11.53% and 8.15%, respectively, over the last 5 years. The company's ability to service its debt is also a concern, with a poor EBIT to Interest ratio of 1.84.

In the latest quarter, the company's net sales have fallen by 29%, indicating a flat performance. Overall, while the stock has shown a strong performance in the short term, its long-term growth and fundamental strength are areas of concern. Investors are advised to hold onto their positions for now and monitor the company's performance closely.