KCP Sugar & Industries Corporation Receives 'Hold' Rating from MarketsMOJO, Despite Bullish Trend and Non-Institutional Investor Support

KCP Sugar & Industries Corporation, a microcap company in the sugar industry, has recently received a 'Hold' rating from MarketsMOJO on April 22, 2024. This upgrade is based on various technical factors such as MACD, Bollinger Band, and KST, which all indicate a bullish trend for the stock.
Despite a 52.56% return in the past year, the company's profits have fallen by -22.9%. However, with a ROE of 18.2 and a price to book value of 1, the stock is currently trading at a discount compared to its historical valuations. This makes it a very attractive option for investors.

Majority shareholders of KCP Sugar & Industries Corporation are non-institutional investors, which has contributed to the company's market-beating performance in the long term as well as the near term. In fact, the stock has outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak due to operating losses and a poor EBIT to Interest ratio of 0.38. This indicates a weak ability to service its debt. Additionally, the company's return on equity is only 5.35%, which signifies low profitability per unit of shareholders' funds.

In the latest quarter, the company's profits have fallen by -113.1%, with a PAT of -4.32 crores. This could be a cause for concern for investors, but it is important to note that this is a one-time event and does not reflect the overall performance of the company.

Overall, KCP Sugar & Industries Corporation is a microcap company with a hold rating, indicating a neutral stance for investors. While the stock is currently in a bullish range, its weak long-term fundamental strength should be considered before making any investment decisions.