Nitta Gelatin India Receives 'Buy' Rating from MarketsMOJO, Strong Financials and Growth Make it an Attractive Investment Opportunity

Nitta Gelatin India, a microcap company in the chemicals industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on several positive factors that make the stock an attractive investment opportunity.
One of the key reasons for the 'Buy' rating is the company's low Debt to Equity ratio, which is at an average of 0.40 times. This indicates a strong financial position and stability for the company.

Moreover, Nitta Gelatin India has shown healthy long-term growth with an annual rate of 60.09% in operating profit. This is a positive sign for investors as it reflects the company's ability to generate consistent profits.

In addition, the company has declared positive results for the last 8 consecutive quarters, with its PAT (HY) growing at an impressive rate of 81.69%. The operating cash flow (Y) is also at its highest at Rs 101.04 crore, while the ROCE (HY) is at a record high of 39.01%.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on 31-Jan-24. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are all indicating a bullish trend for the stock.

With a ROE of 29.8 and a price to book value of 3, the stock is attractively valued. It is also trading at a discount compared to its historical valuations, making it a good opportunity for investors.

Over the past year, Nitta Gelatin India has generated a return of 72.89%, while its profits have risen by 78.4%. This is reflected in the company's low PEG ratio of 0.1, which further strengthens its investment potential.

Moreover, the company has consistently outperformed BSE 500 in the last 3 annual periods, making it a reliable and consistent performer.

However, there are some risks associated with investing in Nitta Gelatin India. Despite being a microcap company, domestic mutual funds hold only 0.18% of the company. This could indicate that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

In conclusion, Nitta Gelatin India is a promising investment opportunity with strong financials, consistent growth, and a bullish trend. However, investors should also consider the risks associated with the stock before making any investment decisions.