Datamatics Global Services Receives 'Hold' Rating from MarketsMOJO, Stock in Mildly Bullish Range

Datamatics Global Services, a smallcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on October 18, 2024. This upgrade is based on several factors, including the company's low Debt to Equity ratio, which is currently at 0 times on average.
Technically, the stock is in a Mildly Bullish range, with the trend improving from Mildly Bearish on October 18, 2024. This is supported by multiple factors such as Bollinger Band, DOW, and OBV. However, the stock is currently trading at a premium compared to its average historical valuations.

Datamatics Global Services has a Fair valuation with a Price to Book Value of 2.8 and a ROE of 16.1. However, over the past year, the stock has generated a negative return of -5.39%, while its profits have also fallen by -5.7%.

In the latest quarter, the company reported flat results with its CASH AND CASH EQUIVALENTS(HY) at the lowest of Rs 131.25 crore and PBDIT(Q) at Rs 51.40 crore. The OPERATING PROFIT TO NET SALES (Q) was also at its lowest at 13.05%.

Despite being a smallcap company, domestic mutual funds hold only 0.17% of Datamatics Global Services. This could be due to their capability to conduct in-depth research on companies, and their small stake may signify that they are not comfortable with the current price or the business.

In the last year, Datamatics Global Services has underperformed the market, with the stock generating negative returns of -5.39%, while the market (BSE 500) has generated returns of 34.39%. This could be a cause for concern for investors. Overall, with a 'Hold' rating, it is advised to carefully monitor the company's performance before making any investment decisions.