Sunil Industries Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Promoter Confidence Boost Stock

Sunil Industries, a microcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on June 25, 2024. This upgrade is based on various technical factors, such as the stock being in a bullish range and improvements in its technical trend.
One of the main reasons for the 'Hold' rating is the stock's attractive valuation, with a ROCE of 9.8 and a discount compared to its historical valuations. However, the company's profits have fallen by -34.9% in the past year, despite the stock generating a return of 95.19%.

The majority shareholders of Sunil Industries are the promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 95.19% in the last year, compared to the market's return of 39.00%.

However, the company's long-term fundamental strength is weak, with an average ROCE of 7.91% and poor growth in net sales and operating profit over the last 5 years. Additionally, Sunil Industries has a high debt to EBITDA ratio of 4.41 times, indicating a low ability to service debt.

In the latest quarter, the company's results were flat, with the lowest net sales and EPS at Rs 14.06 crore and Rs 0.00, respectively. Overall, while Sunil Industries may have some positive aspects, it is important to consider the weak long-term fundamentals before making any investment decisions.