Sreeleathers Receives 'Hold' Rating from MarketsMOJO, Showing Mixed Performance and Concerning Factors

Sreeleathers, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times. The stock is also showing a Mildly Bullish trend, with technical factors such as Bollinger Band and KST also being Bullish.
Attractive valuation is another factor contributing to the 'Hold' rating, with a ROE of 7.2 and a Price to Book Value of 1.9. However, the stock is currently trading at a premium compared to its historical valuations. In the past year, the stock has generated a return of 43.47%, while its profits have only risen by 4.8%. This results in a PEG ratio of 5.5, indicating a potential overvaluation.

One area of concern for Sreeleathers is its poor management efficiency, with a low ROE of 6.63%. This signifies low profitability per unit of shareholders' funds. Additionally, the company has shown poor long-term growth, with Net Sales growing at an annual rate of 5.36% and Operating profit at 2.29% over the last 5 years.

In the latest quarter, Sreeleathers reported negative results, with PBT LESS OI(Q) at Rs 6.43 crore, a decrease of 28.79%, and PAT(Q) at Rs 4.78 crore, a decrease of 29.0%. PBDIT(Q) was also at its lowest at Rs 6.74 crore.

Despite being a microcap company, domestic mutual funds hold only 0% of Sreeleathers. This could indicate that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

Overall, while Sreeleathers may have some positive factors, such as a low Debt to Equity ratio and a Mildly Bullish trend, it also has some concerning aspects, such as poor management efficiency and negative results in the latest quarter. Investors should carefully consider these factors before making any decisions regarding this stock.