Kokuyo Camlin downgraded to 'Hold' by MarketsMOJO despite positive results and bullish trend.

Kokuyo Camlin, a smallcap company in the printing and stationery industry, has recently been downgraded to a 'Hold' by MarketsMOJO on September 12, 2024. This decision was based on various factors such as the company's positive results in June 2024, with a growth of 48.2% 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 bullish range, the stock has only generated a return of 36.26% since July 3, 2024. However, multiple technical indicators such as MACD, Bollinger Band, KST, DOW, and OBV suggest a bullish trend for the stock. With a ROCE of 15.8, the stock is fairly valued with an enterprise value to capital employed ratio of 6. It is also trading at a discount compared to its historical valuations. However, the company's profits have only risen by 21% in the past year, resulting in a PEG ratio of 2.4. Kokuyo Camlin has consistently generated positive returns over the last 3 years, outperforming the BSE 500 index. However, its long-term growth has been poor with a net sales growth rate of 3.35% and operating profit growth rate of 16.62% over the last 5 years. Despite being a smallcap company, domestic mutual funds hold only 0% of the company's shares. This could indicate that they are not comfortable with the current 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 a bullish trend in the short term, its long-term growth and lack of interest from domestic mutual funds may be a cause for concern for investors. It is important to carefully consider all factors before making any investment decisions.