D B Corp downgraded to 'Hold' by MarketsMOJO due to mixed performance.

D B Corp, a midcap company in the printing and publishing industry, has recently been downgraded to a 'Hold' by MarketsMOJO on October 17, 2024. This decision was based on various factors, including the company's low Debt to Equity ratio of 0.02 times, which is considered favorable. Additionally, the stock is currently in a Mildly Bullish range and its MACD and OBV technical factors are also Bullish.
Despite these positive indicators, the company's ROE of 20.8 and Price to Book Value of 2.8 suggest that the stock is trading at a premium compared to its historical valuations. However, over the past year, the stock has generated a return of 13.17%, while its profits have risen by 66.6%. This has resulted in a low PEG ratio of 0.2, indicating that the stock may still have potential for growth.

D B Corp is the largest company in the printing and publishing sector with a market cap of Rs 5,932 crore, constituting 31.42% of the entire sector. Its annual sales of Rs 2,410.65 crore make up 22.92% of the industry. However, the company has shown poor long-term growth with a net sales growth rate of only 0.20% over the last 5 years.

In its latest financial results for September 2024, D B Corp reported flat results with a low operating profit to interest ratio of 17.98 times and a decrease in PAT of -17.6%. Its net sales also saw a decline, reaching a low of Rs 558.95 crore. This has resulted in the stock underperforming the market in the last 1 year, with a return of only 13.17% compared to the market's return of 33.11%.

It is worth noting that the majority shareholders of D B Corp are its promoters, indicating their confidence in the company's future prospects. However, based on the current market conditions and the company's recent financial performance, MarketsMOJO has downgraded the stock to a 'Hold'. Investors are advised to carefully consider these factors before making any investment decisions.