TIL Receives 'Hold' Rating from MarketsMOJO After Positive Results and Bullish Technical Trend

TIL, a smallcap engineering company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared very positive results in June 2024, with a growth in net sales of 1835.84%. TIL has also shown positive results for the last two consecutive quarters, with a higher PAT (HY) at Rs 33.76 crore and the highest net sales (Q) at Rs 66.98 crore. The company's PBDIT (Q) has also seen a significant increase at Rs -4.74 crore.
Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on 24-Sep-24. Multiple factors such as RSI, MACD, Bollinger Band, and KST are also bullish for the stock.

However, TIL's high debt (debt-equity ratio at 5.09 times) indicates weak long-term fundamental strength. The company also has a low ability to service debt, with a high debt to EBITDA ratio of 3.65 times. Additionally, TIL has a low return on equity (avg) of 1.39%, indicating low profitability per unit of shareholders' funds.

The stock is also considered risky due to its negative EBITDA. It is currently trading at a higher risk compared to its average historical valuations. While the stock has generated a return of 30.02% in the past year, its profits have only risen by 94%.

Moreover, there has been a decrease in promoter confidence as they have reduced their stake in the company by -8.48% over the previous quarter and currently hold 68.43% of the company. This decrease in stake may signify reduced confidence in the future of the business.

In the last year, TIL has underperformed the market, generating a return of 30.02%, much lower than the market (BSE 500) returns of 40.54%. With these factors in mind, MarketsMOJO has upgraded TIL's stock to a 'Hold' rating.