Jenburkt Pharmaceuticals downgraded to 'Hold' by MarketsMOJO, but shows strong financial performance

Jenburkt Pharmaceuticals, a microcap company in the pharmaceuticals and drugs industry, has recently been downgraded to a 'Hold' by MarketsMOJO on November 22, 2024. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times on average.
However, the company has shown positive results in September 2024, with its DEBTORS TURNOVER RATIO(HY) reaching a high of 9.94 times, and its NET SALES(Q) and PBDIT(Q) also reaching their highest at Rs 41.22 crore and Rs 11.43 crore respectively.

Technically, the stock is currently in a Bullish range and has shown improvement since November 6, 2024, generating a return of -6.03%. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV have contributed to this bullish trend.

Jenburkt Pharmaceuticals has also consistently outperformed the BSE 500 index in the last 3 annual periods, with a return of 70.85% in the last year alone. However, its long-term growth has been poor, with a 3.90% annual growth in Net Sales and 11.72% in Operating profit over the last 5 years.

The company currently has a ROE of 19.2, making it an expensive valuation with a 3.3 Price to Book Value. However, it is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 70.85%, its profits have only risen by 23.8%, resulting in a PEG ratio of 0.6.

Interestingly, despite being a microcap company, domestic mutual funds hold only 0% of the company. This could signify that they are either not comfortable with the current price or have not conducted in-depth research on the company.