KDDL Downgraded to 'Sell' by MarketsMOJO After Negative Results in June 2024

KDDL, a smallcap company in the miscellaneous industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 18, 2024. This decision was based on the company's negative results in June 2024, after 14 consecutive quarters of positive performance. The company's PAT(Q) has fallen by -33.1%, with the lowest operating profit to interest ratio at 7.77 times and the highest interest at Rs 7.06 cr.
One of the reasons for this downgrade is the fact that despite its size, 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. However, the company has shown healthy long-term growth with an annual rate of 29.19% in operating profit.

Technically, the stock is in a mildly bullish range with multiple factors such as MACD, KST, DOW, and OBV pointing towards a bullish trend. Additionally, with a ROE of 14, the stock is fairly valued with a price to book value of 5.2. It is also currently trading at a discount compared to its historical valuations.

Over the past year, KDDL has generated a return of 51.10%, while its profits have risen by 42.2%. This gives the company a PEG ratio of 1, indicating a fair valuation. Furthermore, the stock has consistently outperformed the BSE 500 index in the last 3 annual periods, showcasing its strong performance.

In conclusion, while KDDL may have been downgraded to a 'Sell' by MarketsMOJO, it is important to note that the company has shown consistent returns and healthy long-term growth. Investors should carefully consider all factors before making any investment decisions.