MarketsMOJO Downgrades Standard Industries Due to Poor Growth and Financial Performance

Aug 12 2024 06:41 PM IST
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Standard Industries, a microcap trading company, has received a 'Sell' rating from MarketsMojo due to its poor long-term growth and recent flat financial results. Despite a high dividend yield and bullish technical factors, the company's negative EBITDA and low institutional holding suggest caution for investors.
Standard Industries, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on August 12, 2024. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of -0.16% over the last 5 years.

In addition, the company's recent financial results for June 2024 have been flat, with a significant decrease in profits and the lowest return on capital employed and dividend payout ratio. This has also led to a negative EBITDA, making the stock a risky investment compared to its historical valuations.

Despite a high dividend yield of 3.4%, Standard Industries has a low debt to equity ratio and is technically in a mildly bullish range. Its MACD and KST technical factors are also bullish, indicating potential for future growth.

Furthermore, the company has a high institutional holding of 42.91%, suggesting that these investors have the capability and resources to analyze the company's fundamentals better than most retail investors.

While the stock has generated a return of 41.98% in the past year, it has also outperformed the BSE 500 in the last 3 years, 1 year, and 3 months. However, with the recent downgrade and poor financial performance, it may be wise for investors to approach Standard Industries with caution.
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