MarketsMOJO Upgrades Pyramid Technoplast to 'Hold' Amidst Concerns for Investors

On November 26, 2024, MarketsMOJO upgraded their stock call on Pyramid Technoplast to 'Hold'. This decision was based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.00 times. Additionally, the stock is currently in a Bullish range and has shown a 7.12% return since November 25, 2024.

However, there are some factors that may cause concern for investors. The company has shown poor long-term growth, with an annual rate of only 18.74% in operating profit over the last 5 years. In the most recent quarter, Pyramid Technoplast's profits have also fallen, with a -21.6% decrease in PAT(Q) and the lowest OPERATING PROFIT TO NET SALES (Q) and PBT LESS OI(Q) at 7.11% and Rs 6.77 cr, respectively.

Furthermore, with a ROE of 11.5, the company's valuation is considered expensive with a 3.3 Price to Book Value. In the past year, while the stock has generated a return of 1.46%, its profits have fallen by -8%. This may be a cause for concern for investors.

It is also worth noting that despite being a microcap company, domestic mutual funds hold only 0% of Pyramid Technoplast's stock. This could indicate that they are either not comfortable with the current price or the business itself. Additionally, the stock has underperformed the market in the last year, with a return of only 1.46% compared to the market's (BSE 500) return of 27.33%.

In conclusion, while MarketsMOJO has upgraded their stock call to 'Hold' for Pyramid Technoplast, there are some factors that may cause concern for investors. It is important to carefully consider all aspects of the company before making any investment decisions.