Jyoti Resins and Adhesives Downgraded to 'Sell'

Jyoti Resins and Adhesives, a smallcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2023-11-29. This decision was based on the company's high valuation, with a price to book value of 17.7 and a ROE of 57.1.
Despite the company's strong profits, which have grown by 103.7% in the past year, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business itself.

On the positive side, Jyoti Resins and Adhesives has a low debt to equity ratio and has shown healthy long-term growth in net sales and operating profit. The company has also consistently declared positive results for the last 13 quarters.

However, the technical trend for the stock is currently sideways, with no clear price momentum. This trend has deteriorated since 04-Dec-23 and has generated -0.38% returns since then.

Despite generating 17.98% returns in the last year and outperforming BSE 500 in the last 3 annual periods, MarketsMOJO has downgraded Jyoti Resins and Adhesives to a 'Sell' due to its high valuation and lack of interest from domestic mutual funds. Investors should carefully consider these factors before making any decisions regarding this smallcap company in the chemicals industry.