Haldyn Glass Downgraded to 'Hold' by MarketsMOJO

Haldyn Glass, a microcap company in the glass industry, has recently been downgraded to a 'Hold' by MarketsMOJO on September 11, 2023. This decision was based on the company's low Debt to Equity ratio, which is currently at 0.02 times.
Despite being in a bullish range, the stock has shown a mild improvement since September 11, 2023, generating a return of 26.49%. This can be attributed to factors such as MACD, KST, DOW, and OBV, which are all currently bullish.

In the long term, Haldyn Glass has outperformed the BSE 500 index, with a return of 92.00% in the last year. However, its net sales have only grown at an annual rate of 4.80% and operating profit at 14.72% over the last 5 years, indicating poor long term growth.

The company recently declared negative results in September 2023, after 5 consecutive positive quarters. Its PAT(Q) has fallen by -64.0%, with CASH AND CASH EQUIVALENTS(HY) at its lowest at Rs 11.23 cr and NET SALES(Q) at its lowest at Rs 46.43 cr.

With a ROCE of 5.8, Haldyn Glass currently has an expensive valuation with a 3.1 Enterprise value to Capital Employed. The stock is also trading at a premium compared to its average historical valuations, with a PEG ratio of 2.4.

Interestingly, despite its small size, domestic mutual funds hold only 0% of the company. This could signify 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 conclusion, while Haldyn Glass has shown market-beating performance in the near term, its long term growth and financials raise some concerns. Investors may want to hold off on investing in this microcap company until further improvements are seen.