DMCC Speciality Chemicals Receives 'Hold' Rating

DMCC Speciality Chemicals, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on December 4, 2023. This upgrade is based on the company's strong ability to service its debt, with a low Debt to EBITDA ratio of 1.05 times.
Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Mildly Bearish on December 4, 2023. The DOW and OBV technical factors also show a Mildly Bullish trend.

However, the company has shown poor long-term growth, with an annual rate of -24.03% in operating profit over the last 5 years. In the latest quarter, the company's net sales have fallen by -26.92%, while interest has grown by 32.24%. The company also has a low cash and cash equivalents balance of Rs 2.12 crore.

With a ROCE of 7, the company has an expensive valuation with a 3 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of -0.36%, while its profits have fallen by -33.2%.

It is worth noting that despite its small size, domestic mutual funds hold only 0.02% of the company. This could indicate that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

In the last year, DMCC Speciality Chemicals has underperformed the market, with negative returns of -0.36% compared to the market's 16.72% returns. This could be a cause for concern for investors.

Overall, while the company has shown some positive signs, it is important to consider its poor long-term growth and underperformance in the market before making any investment decisions.