Jindal Steel & Power downgraded to 'Hold' by MarketsMOJO, despite strong past performance.

Jindal Steel & Power, a largecap company in the iron and steel industry, has recently been downgraded to a 'Hold' by MarketsMOJO on July 10, 2024. This decision was based on various factors, including the company's high management efficiency with a ROCE of 17.02% and healthy long-term growth with an annual operating profit growth rate of 20.33%.
Technically, the stock is currently in a Mildly Bullish range, with multiple bullish indicators such as MACD, KST, and DOW. Additionally, with a ROCE of 13.2, the stock is fairly valued with a 2.1 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Over the past year, Jindal Steel & Power has generated a return of 61.58%, while its profits have risen by 60.8%. This is reflected in the company's low PEG ratio of 0.3. Furthermore, the stock has a high institutional holding of 26.66%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals.

In terms of market performance, Jindal Steel & Power has outperformed the BSE 500 in the last 3 years, 1 year, and 3 months, making it a market-beating stock in both the long and near term. However, the company's results for March 2024 were flat, with a decrease in PBT LESS OI(Q) by 23.4% and PAT(Q) by 32.6%. The ROCE(HY) also saw a decline, reaching its lowest at 12.40%.

Overall, while Jindal Steel & Power has shown strong performance in the past, the recent downgrade to 'Hold' suggests that investors should closely monitor the company's future performance before making any investment decisions.