KCP . Receives 'Buy' Rating from MarketsMOJO, Shows Strong Financials and Bullish Trend

KCP ., a smallcap cement company, has recently caught the attention of investors as MarketsMOJO upgraded its stock to a 'Buy' rating on 2024-08-06. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.44 times.
In addition, KCP . has been consistently delivering positive results for the last 4 quarters, with a PAT (HY) of Rs 89.04 crore, showing a growth of 42.95%. The company also has a strong cash position, with CASH AND CASH EQUIVALENTS (HY) at its highest at Rs 915.66 crore and a low DEBT-EQUITY RATIO (HY) of 0.34 times.

Technically, the stock is in a bullish range and has shown improvement from Mildly Bullish to Bullish on 06-Aug-24. Multiple factors such as MACD, KST, DOW, and OBV are also indicating a bullish trend for the stock.

With an ROE of 13.4 and a price to book value of 2, KCP . is currently trading at an attractive valuation compared to its historical average. In the past year, the stock has generated a return of 86.89%, while its profits have risen by 308.5%. This is reflected in the company's low PEG ratio of 0.1, indicating its market-beating performance.

However, there are some risks associated with investing in KCP . Despite its strong financials, the company has shown poor long-term growth with an annual rate of -15.52% for operating profit over the last 5 years.

Moreover, despite being a smallcap company, domestic mutual funds hold only 0.01% of the company's shares. This could signify that they are either not comfortable with the current price or have not conducted in-depth research on the company.

In conclusion, KCP . is a promising smallcap company in the cement industry with strong financials and a bullish trend in the stock market. However, investors should also consider the risks associated with the company before making any investment decisions.