Crompton Greaves Consumer Electrical Upgraded to 'Hold'

Crompton Greaves Consumer Electrical, a midcap company in the consumer electronics industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's high management efficiency, with a ROCE of 48.63%, and a low Debt to Equity ratio of 0.04 times. The stock is also currently in a Mildly Bullish range, with technical factors such as RSI and Bollinger Bands showing a Bullish trend.
One of the key factors contributing to this upgrade is the company's high institutional holdings at 83.65%. This indicates that these investors have better capability and resources to analyze the fundamentals of companies, making their decision to hold the stock a positive sign for retail investors.

However, there are some concerns regarding the company's long-term growth. Over the last 5 years, the operating profit has only grown at an annual rate of 3.71%, which is relatively low compared to its peers. Additionally, the company has declared negative results for the last 5 consecutive quarters, with its operating cash flow and ROCE at their lowest levels.

Furthermore, the stock is currently trading at an expensive valuation, with an Enterprise value to Capital Employed ratio of 6.3. This is higher than its historical average, indicating that the stock is currently overvalued. In the past year, while the stock has generated a negative return of -14.94%, its profits have also fallen by -25%.

Moreover, Crompton Greaves Consumer Electrical has consistently underperformed against the benchmark over the last 3 years. Despite generating a negative return of -14.94% in the last 1 year, the stock has also underperformed the BSE 500 index in each of the last 3 annual periods.

In conclusion, while the recent upgrade to 'Hold' by MarketsMOJO may seem positive, there are some concerns regarding the company's long-term growth and current valuation. Investors should carefully consider these factors before making any investment decisions.