Panorama Studios International Downgraded to 'Hold' by MarketsMOJO Despite Strong Growth and Technical Trends

Panorama Studios International, a microcap film production, distribution, and entertainment company, has recently been downgraded to a 'Hold' by MarketsMOJO on February 1, 2024. This decision was based on various factors, including the company's high management efficiency with a ROCE of 32.73% and its healthy long-term growth with an annual operating profit growth rate of 70.03%.
Technically, the stock is currently in a bullish range and has shown significant improvement since December 27, 2023, generating a return of 99.42%. This is supported by multiple bullish indicators such as MACD, Bollinger Band, KST, and DOW.

However, the company's recent financial results for September 2023 showed a decline in PBT LESS OI(Q) at Rs 8.28 crore, falling by -38.0%, while INTEREST(Q) at Rs 2.62 crore grew by 59.76%. The NET SALES(Q) also saw a decrease, reaching its lowest at Rs 52.04 crore.

With a ROCE of 62, the company's valuation is considered expensive with an enterprise value to capital employed ratio of 7.4. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite the company's impressive return of 364.03% in the past year, its profits have risen by a staggering 4670%. This could be a sign of potential future growth for the company.

It is worth noting that despite its small size, domestic mutual funds hold only 0% of the company. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while Panorama Studios International has shown promising growth and technical trends, its recent financial results and valuation may have contributed to its downgrade to a 'Hold' by MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this microcap company.