Danlaw Technologies India Receives 'Hold' Rating from MarketsMOJO, Shows Strong Market Performance

Danlaw Technologies India, a smallcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on October 14, 2024. This upgrade is based on the company's healthy long-term growth, with an annual growth rate of 51.50% in net sales and 101.38% in operating profit. Additionally, the company has declared positive results for the last three consecutive quarters, with a high ROCE of 16.00% and a debtors turnover ratio of 7.28 times.
Technically, the stock is currently in a mildly bullish range, with an improved trend from mildly bearish on October 14, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock. In terms of market performance, Danlaw Technologies India has outperformed the BSE 500 in the last three years, one year, and three months, with a return of 200.37% in the last year alone.

However, the company's management efficiency is a cause for concern, with a low ROCE of 3.65%. This signifies a low profitability per unit of total capital (equity and debt). Additionally, with an ROCE of 8.4, the stock is currently trading at an expensive valuation, with an enterprise value to capital employed ratio of 21.9. Despite the stock's impressive return of 200.37% in the last year, its profits have only risen by 119.5%, resulting in a PEG ratio of 3.2.

It is also worth noting that despite its smallcap size, domestic mutual funds hold only 0% of the company. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company. Overall, while Danlaw Technologies India has shown strong market performance, its management efficiency and valuation may be cause for caution.