Nocil receives 'Hold' rating from MarketsMOJO, despite low debt and increasing institutional interest

Nocil, a midcap chemical company, has recently received a 'Hold' rating from MarketsMOJO. The company's low Debt to Equity ratio, which is at 0 times on average, is one of the key factors contributing to this upgrade.
Technically, the stock is in a bullish range and the trend has improved from mildly bullish on October 16, 2024. This is supported by factors such as MACD, Bollinger Band, and KST.

Institutional investors have also shown an increasing interest in Nocil, with a 1.84% increase in their stake over the previous quarter. This is a positive sign as these investors have better resources and capabilities to analyze a company's fundamentals compared to retail investors.

However, Nocil has shown poor long-term growth with an annual operating profit growth rate of -12.19% over the last 5 years. In addition, the company's results for June 2024 were negative, with a fall in PAT(Q) at Rs 27.06 crore and PBDIT(Q) at its lowest at Rs 41.05 crore. The operating profit to net sales (Q) was also at its lowest at 11.03%.

With a ROE of 7.8, Nocil's valuation is considered to be very expensive with a 3 price to book value. The stock is currently trading at a premium compared to its average historical valuations. While the stock has generated a return of 30.78% over the past year, its profits have only risen by 7.5%. This results in a high PEG ratio of 5.5 for the company.

Overall, while Nocil has some positive aspects such as low debt and increasing institutional interest, its poor long-term growth and expensive valuation make it a 'Hold' for now. Investors should carefully consider these factors before making any investment decisions.