MarketsMOJO Upgrades DDev Plastiks Industries to 'Hold' with Strong Financial Position and Potential for Long-Term Growth

DDev Plastiks Industries, a smallcap company in the chemicals industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on November 27, 2024.
The upgrade is based on several factors, including the company's strong ability to service debt with a low Debt to EBITDA ratio of 0.74 times. This indicates a healthy financial position and the potential for long-term growth. In fact, the company's operating profit has grown at an annual rate of 57.22%.

The technical trend for DDev Plastiks Industries is currently sideways, indicating no clear price momentum. However, the trend has improved from mildly bearish on November 27, 2024, and has generated a return of 5.18% since then.

With a ROE of 28.6, the company has a very attractive valuation with a price to book value of 4.7. This means that the stock is trading at a discount compared to its average historical valuations. Additionally, in the past year, while the stock has generated a return of 51.39%, its profits have also risen by 24.9%. The PEG ratio of the company is 0.7, indicating a potential undervaluation.

DDev Plastiks Industries has also outperformed the market (BSE 500) with a return of 51.39% in the last year, compared to the market's return of 28.06%.

However, the company's results for September 2024 were flat. Despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth on-the-ground research on companies.