Albert David . Downgraded to 'Hold' by MarketsMOJO, Despite Strong Financials

Albert David ., a microcap pharmaceutical company, has recently been downgraded to a 'Hold' by MarketsMOJO on July 19, 2024. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times.
However, the company has shown positive results for the last 4 consecutive quarters, with a growth of 121.50% in PAT (HY) and a highest ROCE (HY) of 25.27%. It also has a strong cash position, with the highest CASH AND CASH EQUIVALENTS (HY) at Rs 31.16 cr.

Technically, the stock is in a Mildly Bullish range and both the MACD and KST technical factors are also Bullish. With a ROE of 19.7, the company has a Very Attractive valuation with a 1.8 Price to Book Value. It is also trading at a fair value compared to its average historical valuations.

In the past year, the stock has outperformed the market (BSE 500) with a return of 78.96%, while its profits have risen by 108.5%. This is reflected in the company's low PEG ratio of 0.1, indicating a market beating performance.

However, the company's long term growth has been poor, with a slow annual growth rate of 2.72% in Net Sales over the last 5 years. This may be a concern for investors looking for long term growth potential.

It is also worth noting that despite its size, domestic mutual funds hold only 0.04% of the company. This could suggest that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while Albert David . has shown positive results and a strong financial position, its long term growth and lack of interest from domestic mutual funds may be a cause for concern for investors. MarketsMOJO's downgrade to 'Hold' reflects this cautious sentiment.