Suryalakshmi Cotton Mills Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend and Attractive Valuation

Suryalakshmi Cotton Mills, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on January 15, 2024. The stock has shown a bullish trend and has improved from a mildly bullish status on January 10, 2024. This is due to multiple factors such as MACD, Bollinger Band, and KST being bullish.
The company has an attractive valuation with a ROCE of 10.1 and an enterprise value to capital employed ratio of 0.7. It is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 39.06%, while its profits have increased by 320.7%. The PEG ratio of the company is also at a low of 0.1.

Suryalakshmi Cotton Mills has shown market-beating performance in both the long term and near term. Along with its 39.06% return in the last year, it has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company has weak long-term fundamental strength with an average ROCE of 5.79%. Its net sales have grown at a negative annual rate of -0.17% and operating profit at 4.20% over the last 5 years. Additionally, it has a high debt to EBITDA ratio of 6.13 times, indicating a low ability to service debt.

In the latest quarter, the company's results have been flat with a decline in both PAT and net sales. PAT has decreased by -82.99% while net sales have fallen by -7.4%. Furthermore, 50.65% of the promoter shares are pledged, which can put additional downward pressure on the stock prices in falling markets.

Overall, Suryalakshmi Cotton Mills has shown a bullish trend and has an attractive valuation. However, it also has weak long-term fundamentals and a high percentage of pledged promoter shares, which may affect its performance in the future. Investors are advised to hold their positions in the stock for now.