Kokuyo Camlin downgraded to 'Hold' by MarketsMOJO despite positive results

Kokuyo Camlin, a smallcap company in the printing and stationery industry, has recently been downgraded to a 'Hold' by MarketsMOJO on October 3, 2024. This decision was based on various factors, including the company's positive results in June 2024, with a 48.2% growth in PAT(Q) at Rs 16.24 crore, the highest DPS(Y) at Rs 0.50, and the highest PBDIT(Q) at Rs 27.78 crore.
Despite being in a mildly bullish range, the stock has multiple bullish factors such as MACD, KST, and DOW. Additionally, with a ROCE of 15.8, the stock is currently trading at an attractive valuation with a 5.4 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Over the past year, the stock has generated a return of 39.10%, while its profits have risen by 21%. However, the PEG ratio of the company is 2.2, indicating poor long-term growth as Net Sales has only grown by an annual rate of 3.35% and Operating profit at 16.62% over the last 5 years.

Despite consistent returns over the last 3 years and outperforming BSE 500, domestic mutual funds hold only 0% of the company. This may suggest that they are not comfortable with the price or the business, as they have the capability to conduct in-depth research on companies.

In conclusion, while Kokuyo Camlin has shown positive results and has multiple bullish factors, its long-term growth may be a concern. Investors may want to hold onto their stocks for now and keep an eye on the company's future performance.