KDDL Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth and Attractive Valuations

KDDL, a smallcap company in the miscellaneous industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 29.19%. Additionally, the stock is currently in a mildly bullish range and the technical trend has improved from mildly bearish on October 21, 2024. The key technical factor, DOW, has also been bullish since the same date.
One of the main reasons for the 'Hold' rating is the company's attractive valuation, with a price to book value of 4.7 and a return on equity (ROE) of 14. This indicates that the stock is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 40.14%, while its profits have risen by 42.2%. The PEG ratio of the company is also favorable at 0.9.

KDDL has consistently delivered strong returns over the last three years, outperforming the BSE 500 index in each of the last three annual periods. However, the company declared negative results in June 2024 after 14 consecutive positive quarters. The profit after tax (PAT) for the quarter was Rs 17.27 crore, a decrease of 33.1% compared to the same quarter last year. The operating profit to interest ratio was also at its lowest at 7.77 times, while the interest for the quarter was at its highest at Rs 7.06 crore.

It is worth noting that despite its size, domestic mutual funds hold only 0% of the company. This could be due to their capability to conduct in-depth research on companies, and their small stake may signify that they are not comfortable with the current price or the business. Overall, while KDDL has shown strong growth and attractive valuations, the recent negative results and low interest from domestic mutual funds may warrant a 'Hold' rating for now.