MarketsMOJO Downgrades Standard Industries Due to Poor Growth and Financial Performance

Standard Industries, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on August 1, 2024. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of -2.22% over the last 5 years.
In addition, the company's recent financial results for March 2024 have been flat, with a significant decrease in profit after tax and a low return on capital employed. The non-operating income for the quarter is also a concern, as it makes up 191.67% of the profit before tax.

The stock is also considered risky, as it is currently trading at a higher valuation compared to its historical average. Despite generating a return of 37.54% in the past year, the company's profits have decreased by -100.6%. However, it does have a high dividend yield of 3.3%.

On a positive note, Standard Industries has a low debt to equity ratio and is technically in a mildly bullish range. The company's MACD and KST technical factors are also bullish, indicating potential for growth.

Moreover, the company has a high institutional holding of 42.91%, which suggests that these investors have the resources and capability to analyze the company's fundamentals.

In the long term, Standard Industries has outperformed the BSE 500 index, generating market-beating returns. This trend has also been seen in the last 3 years, 1 year, and 3 months. However, considering the recent downgrade and other factors, it may be wise for investors to approach this stock with caution.