KDDL Downgraded to 'Sell' by MarketsMOJO, Institutional Investors Decrease Stake

KDDL, a smallcap company in the miscellaneous industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 21, 2024. This decision was based on several factors, including flat results in September 2024 with a decrease in PBT less OI(Q) at Rs 35.77 crore, a fall of -8.09%.
In addition, institutional investors have decreased their stake in the company by -2.16% over the previous quarter, holding only 11.28% collectively. This is a cause for concern as institutional investors have better resources and capabilities to analyze a company's fundamentals compared to retail investors.

Furthermore, KDDL has underperformed the market (BSE 500) in the last year, generating negative returns of -9.15% while the market has seen a 23.25% increase.

On a positive note, the company has shown healthy long-term growth with an annual rate of 29.19% in operating profit. However, the technical trend is currently sideways, indicating no clear price momentum.

With a ROE of 11, KDDL is currently fairly valued with a price to book value of 3.9. It is also trading at a discount compared to its average historical valuations. However, in the past year, while the stock has generated a negative return of -9.15%, its profits have only risen by 3.4%, resulting in a high PEG ratio of 10.5.

Overall, considering the recent downgrade and various factors affecting the company, it may be wise for investors to approach KDDL with caution and do their own thorough research before making any investment decisions.