India Gelatine & Chemicals Downgraded to 'Hold' Rating by MarketsMOJO: What Investors Need to Know

India Gelatine & Chemicals, a microcap company in the chemicals industry, has recently been downgraded to a 'Hold' rating by MarketsMOJO on April 15, 2024. This decision was based on various factors, including the company's low Debt to Equity ratio, which is currently at 0 times on average.
However, the company has shown healthy long-term growth with an annual operating profit growth rate of 80.73%. Additionally, the stock is currently in a Mildly Bullish range, with multiple bullish indicators such as MACD, Bollinger Band, and KST.

With a Return on Equity (ROE) of 21.5%, the stock is considered to have an attractive valuation with a Price to Book Value of 2. This is also supported by the fact that the stock is trading at a fair value compared to its average historical valuations.

Over the past year, the stock has generated a return of 38.25%, while its profits have increased by 83.4%. This results in a PEG ratio of 0.1, indicating that the stock is undervalued.

The majority shareholders of India Gelatine & Chemicals are the promoters, which can be seen as a positive sign for the company's stability and growth potential.

Moreover, the company has consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

However, the company's financial results for December 2023 were flat, with a decrease of 12.9% in net sales and the lowest PBDIT (Profit Before Depreciation, Interest, and Taxes) at Rs 7.58 crore.

In conclusion, while India Gelatine & Chemicals has shown promising growth and has a stable ownership structure, the recent downgrade to a 'Hold' rating suggests caution for potential investors. It is important to keep an eye on the company's financial performance in the coming quarters to make informed investment decisions.