Nocil Upgraded to 'Hold' by MarketsMOJO, Institutional Investors Show Interest

Nocil, a smallcap company in the chemicals industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on various factors, including the company's low Debt to Equity ratio, which is currently at 0 times. Additionally, the stock is currently in a Bullish range and the technical trend has improved from Mildly Bullish on 05-Sep-24. This is supported by factors such as MACD, Bollinger Band, and KST.
One of the reasons for this upgrade is the increasing participation of institutional investors in the company. These investors have recently increased their stake by 0.92% and now collectively hold 12.22% of the company. This is a positive sign as institutional investors have better capabilities and resources to analyze the fundamentals of companies compared to retail investors.

However, Nocil has shown poor long-term growth with an annual rate of -7.45% in operating profit over the last 5 years. In the latest quarter, the company's PAT(Q) has fallen by -18.6% and PBDIT(Q) is at its lowest at Rs 41.05 cr. The operating profit to net sales (Q) is also at its lowest at 11.03%. With a ROE of 7.8, the company has a very expensive valuation with a 2.9 Price to Book Value. This means that the stock is currently trading at a premium compared to its average historical valuations.

In the past year, while the stock has generated a return of 22.83%, its profits have only risen by 7.5%. This results in a PEG ratio of 5.2, which indicates that the stock may be overvalued. Additionally, Nocil has underperformed the market in the last 1 year, with a return of 22.83% compared to the market's (BSE 500) return of 37.08%.

Overall, while Nocil has shown some positive signs with the recent upgrade to 'Hold' and increasing institutional investor participation, the company's poor long-term growth and expensive valuation may be a cause for concern. Investors are advised to carefully consider these factors before making any investment decisions.