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