DCW Receives 'Hold' Rating and Bullish Trend from MarketsMOJO, Institutional Investors Show Confidence

DCW, a smallcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on various technical indicators, such as MACD, Bollinger Band, KST, DOW, and OBV, which all point towards a bullish trend for the stock. Additionally, institutional investors have increased their stake in the company, indicating their confidence in its future prospects.
In terms of performance, DCW has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of 94.02% in the last 1 year alone. However, the company's ability to service its debt is weak, with a poor EBIT to Interest (avg) ratio of 1.56. This also reflects in its low Return on Equity (avg) of 6.07%, indicating low profitability per unit of shareholders' funds.

Furthermore, DCW has shown poor long-term growth, with an annual operating profit growth rate of -8.13% over the last 5 years. In the recent quarter, the company reported negative results, with a significant decline in profits and ROCE at its lowest at 5.91%. Additionally, with a ROCE of 5.1, the stock is currently trading at a very expensive valuation, with an enterprise value to capital employed ratio of 2.5.

Despite these concerns, the stock is currently trading at a discount compared to its average historical valuations. However, it is essential to note that while the stock has generated a high return in the past year, its profits have declined significantly. Therefore, it is advisable to hold the stock for now and monitor its performance closely.