Oil India Limited Downgraded to 'Hold' by MarketsMOJO, Despite Strong Long-Term Growth.

Oil India Limited, a largecap company in the oil exploration and refineries industry, has recently been downgraded to a 'Hold' by MarketsMOJO on April 22, 2024. This decision was based on various factors, including the company's low Debt to Equity ratio of 0.42 times, indicating a healthy financial position.
Despite this, the company has shown a strong long-term growth with an annual increase of 25.27% in Net Sales and 34.67% in Operating Profit. The stock is also currently in a Mildly Bullish range, with multiple bullish indicators such as MACD, KST, and DOW.

Furthermore, Oil India Limited has an attractive valuation with a ROCE of 20.3 and an Enterprise value to Capital Employed ratio of 1.4. It is also trading at a discount compared to its average historical valuations. However, in the past year, while the stock has generated a return of 132.60%, its profits have declined by -11.2%.

One positive aspect for the company is its high institutional holdings at 36.83%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals compared to retail investors.

Moreover, Oil India Limited has consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, the company's results for December 2023 were flat, with a growth of 40.32% in INTEREST(HY) and a low OPERATING PROFIT TO NET SALES (Q) ratio of 35.81%.

Overall, while Oil India Limited has shown strong long-term growth and attractive valuations, the recent downgrade to 'Hold' by MarketsMOJO suggests a cautious approach for investors.