Super Tannery Receives 'Hold' Rating from MarketsMOJO, Shows Promising Short-Term Performance

Super Tannery, a microcap company in the leather industry, has recently received a 'Hold' rating from MarketsMOJO on September 10, 2024. This upgrade is based on various technical factors such as the stock being in a bullish range, improved technical trend, and bullish indicators like MACD, Bollinger Band, and KST.
One of the main reasons for the 'Hold' rating is the company's attractive valuation with a ROCE of 6.5 and a 1.3 Enterprise value to Capital Employed. Additionally, the stock is currently trading at a discount compared to its historical valuations. Despite a 75.25% return in the past year, the company's profits have only risen by 6.5%, resulting in a PEG ratio of 3.6.

Super Tannery has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, the company's long-term fundamental strength is weak, with a -1.13% CAGR growth in operating profits over the last 5 years. The company also has a high Debt to EBITDA ratio of 4.22 times, indicating a low ability to service debt. Furthermore, the company's Return on Equity (avg) is only 5.75%, indicating low profitability per unit of shareholders' funds.

In the latest quarter, Super Tannery's results were flat, with a 55.21% growth in interest expenses. Additionally, 51.12% of the promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets. Overall, while Super Tannery has shown promising performance in the short term, its long-term fundamentals and high promoter pledged shares should be considered before making any investment decisions.