Amines & Plasticizers Receives 'Buy' Rating from MarketsMOJO, Shows Strong Financial Performance

Amines & Plasticizers, a smallcap company in the chemicals industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.39 times. Additionally, the company has shown very positive results in the last quarter, with a growth in net profit of 30.97%. This trend has continued for the past 5 consecutive quarters, with the company's ROCE (HY) at a high of 21.86% and operating profit to interest (Q) at a high of 6.64 times. The company's PBDIT (Q) is also at a high of Rs 22.04 crore.
From a technical standpoint, the stock is currently in a bullish range and has shown improvement since August 2, 2024, generating a return of -2.56%. The MACD and KST technical factors are also bullish, indicating a positive trend for the stock.

In the long term, Amines & Plasticizers has outperformed the BSE 500 index, generating a return of 262.71% in the last year. However, there are some risks to consider. The company's net sales have only grown at an annual rate of 7.29% and operating profit at 15.48% over the last 5 years, indicating potential for poor long term growth. Additionally, with a ROCE of 24.1, the stock is currently very expensive with a 6.7 enterprise value to capital employed. However, the stock is currently trading at a discount compared to its average historical valuations.

Furthermore, despite its size, domestic mutual funds hold only 0% of the company, which may indicate that they are not comfortable with the price or the business. This is a potential red flag for investors to consider.

Overall, Amines & Plasticizers has shown strong financial performance and has received a 'Buy' rating from MarketsMOJO. However, investors should carefully consider the risks involved before making any investment decisions.