MarketsMOJO downgrades Star Cement due to poor long-term growth and negative financial results

Star Cement, a midcap company in the cement industry, has recently received a 'Sell' rating from MarketsMOJO on September 9, 2024. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of -3.39% over the last 5 years.
In addition, the company's recent financial results for June 2024 have also been negative, with a significant decrease in PAT(Q) at Rs 31.04 crore, falling by -66.7%. The OPERATING PROFIT TO NET SALES (Q) has also been at its lowest at 15.46%, and PBT LESS OI(Q) at Rs 37.69 crore.

Moreover, there has been a decrease in institutional investors' participation in the company, with a -0.96% decrease in their stake over the previous quarter. This is a cause for concern as institutional investors have better resources and capabilities to analyze a company's fundamentals compared to retail investors.

On a positive note, Star Cement has a low Debt to Equity ratio (avg) at 0 times and is technically in a Mildly Bullish range. The stocks MACD and KST technical factors are also Bullish, indicating potential growth in the future.

However, with a ROE of 10.9, the company's valuation is fair with a 3.2 Price to Book Value. The stock is currently trading at a premium compared to its average historical valuations. Additionally, while the stock has generated a return of 33.24% over the past year, its profits have fallen by -14.8%.

In conclusion, based on the recent downgrade by MarketsMOJO and the company's financial performance, it may be wise for investors to exercise caution when considering investing in Star Cement.