Chembond Chemicals Receives 'Sell' Rating from MarketsMOJO Due to Poor Long-Term Growth and Negative Financial Results

Chembond Chemicals, a microcap company in the chemicals industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's poor long-term growth, with net sales and operating profit only growing at a rate of 10.08% and 9.44% respectively over the past 5 years.
In addition, the company's recent financial results for June 2024 have also been negative, with a -28.2% decrease in PAT(Q) and the lowest DPR(Y) and NET SALES(Q) at 0.00% and Rs 108.95 cr respectively.

Furthermore, Chembond Chemicals has an expensive valuation with a price to book value of 2.4 and a ROE of 12.3. The stock is currently trading at a premium compared to its historical valuations, and while it has generated a return of 62.85% in the past year, its profits have only risen by 24.8%. The PEG ratio of the company is also at 0.8.

Interestingly, despite its small size, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business itself, as they have the capability to conduct in-depth research on companies.

On a positive note, Chembond Chemicals has a low debt to equity ratio and its stock is currently in a mildly bullish range. Technical indicators such as MACD, KST, and OBV also suggest a bullish outlook for the stock.

In terms of market performance, Chembond Chemicals has outperformed the BSE 500 index in the long term as well as the near term. With a market-beating return of 62.85% in the past year and outperformance in the last 3 years, 1 year, and 3 months, the company has shown potential for growth. However, based on the current data and analysis, MarketsMOJO has downgraded the stock to 'Sell'.