Kokuyo Camlin Receives 'Buy' Rating from MarketsMOJO, Shows Strong Growth in Q2 2024

Sep 17 2024 07:04 PM IST
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Kokuyo Camlin, a smallcap company in the printing and stationery industry, has received a 'Buy' rating from MarketsMojo based on its strong performance in the June 2024 quarter. The stock has shown a significant improvement in its technical trend and is attractively valued with a positive outlook for future growth. However, there are some risks associated with the company that investors should consider before making any investment decisions.
Kokuyo Camlin, a smallcap company in the printing and stationery industry, has recently received a 'Buy' rating from MarketsMOJO on September 17, 2024. This upgrade is based on the positive results the company has shown in the June 2024 quarter, with a 48.2% growth in PAT(Q) at Rs 16.24 crore and the highest DPS(Y) at Rs 0.50. Additionally, the PBDIT(Q) has also reached its highest at Rs 27.78 crore.

The stock is currently in a bullish range and has shown a significant improvement in its technical trend since July 3, 2024, generating a return of 37.26%. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are all indicating a bullish trend for the stock.

Moreover, with a ROCE of 15.8, the stock is attractively valued with a 6 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 48.27%, while its profits have risen by 21%. The PEG ratio of the company is 2.4, indicating a positive outlook for future growth.

Kokuyo Camlin has also shown consistent returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods. However, there are some risks associated with the company, such as 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.

Another risk factor is that despite being a smallcap company, domestic mutual funds hold only 0% of the company. This may signify that they are not comfortable with the current price or the business. However, domestic mutual funds have the capability to conduct in-depth research on companies, so their small stake may also indicate a lack of interest in the company.

Overall, Kokuyo Camlin is a promising smallcap company in the printing and stationery industry, with positive results and a bullish trend. Investors should consider the risks associated with the company before making any investment decisions.
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