TVS Srichakra Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Bullish Factors Present

TVS Srichakra, a smallcap company in the tyre industry, has recently received a 'Hold' rating from MarketsMOJO. The stock is currently in a Mildly Bullish range and the technical trend has improved from Sideways on 19-Aug-24. This is due to multiple bullish factors such as Bollinger Band, KST, and OBV.
One of the reasons for the 'Hold' rating is the stock's attractive valuation with a ROCE of 10 and an Enterprise value to Capital Employed ratio of 2.2. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

However, it is important to note that while the stock has generated a return of 57.51% in the past year, its profits have fallen by -0.5%. This could be a cause for concern for potential investors.

Furthermore, TVS Srichakra has a majority of non-institutional shareholders, which could affect the stock's performance in the long term. In fact, the company has shown poor long-term growth with an annual rate of -6.05% in operating profit over the last 5 years.

In the latest quarter, the company's results have been negative with a fall of -75.4% in PAT(Q) and a growth of 27.16% in INTEREST(HY). The OPERATING PROFIT TO INTEREST (Q) ratio is also at its lowest at 4.14 times.

Overall, while TVS Srichakra has shown market-beating performance in the past year, its long-term growth and recent negative results may be a cause for concern. Investors are advised to carefully consider these factors before making any investment decisions.