KDDL Ltd Faces Bearish Outlook Amid Declining Performance and Rising Costs

KDDL Ltd, a small-cap player in the Gems, Jewellery, and Watches industry, has recently undergone an adjustment in evaluation, reflecting shifts in its technical indicators. The stock's technical trend has transitioned from a mildly bearish stance to a bearish outlook, as indicated by various metrics. The MACD shows a bearish signal on a weekly basis, while the monthly perspective remains mildly bearish. Additionally, Bollinger Bands and moving averages also reflect bearish conditions.
In terms of performance, KDDL has faced challenges over the past year, with a notable decline of 28.87%, significantly underperforming the broader market, which recorded a negative return of 1.85%. The company's recent quarterly results for Q4 FY24-25 revealed a decrease in profit after tax, alongside a notable increase in interest expenses over the nine-month period. Despite these hurdles, KDDL maintains a strong capacity to service its debt, evidenced by a low Debt to EBITDA ratio.

The stock's valuation appears attractive, trading at a discount compared to its peers, with a Price to Book Value of 3.5. However, the lack of domestic mutual fund investment may indicate caution regarding the company's current pricing or business outlook.

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