Deep Polymers Receives 'Hold' Rating from MarketsMOJO, Shows Healthy Long-Term Growth

Deep Polymers, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as a result of the company's healthy long-term growth, with net sales increasing by an annual rate of 4.88% and operating profit by 162.68%.
Technically, the stock is currently in a Mildly Bullish range, with the trend improving from Mildly Bearish on 02-May-24. The MACD and KST technical factors also indicate a Mildly Bullish outlook.

In terms of valuation, Deep Polymers has a ROCE of 9.3 and a fair valuation with a 2.4 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations.

However, the company's profits have fallen by -13.8% over the past year, resulting in a negative return of -7.84%. This underperformance is reflected in the stock's performance compared to the market (BSE 500), which has generated returns of 36.71% in the last year.

Deep Polymers is majority owned by its promoters, and in December 2023, the company reported flat results with the lowest net sales of Rs 23.34 crore. While the stock may not have performed well in the past year, the company's long-term growth potential and fair valuation make it a 'Hold' for now.