Pee Cee Cosma Sope downgraded to 'Hold' by MarketsMOJO, but shows strong performance and potential

Pee Cee Cosma Sope, a microcap FMCG company, has recently been downgraded to a 'Hold' by MarketsMOJO on October 16, 2024. This decision was based on the company's low Debt to Equity ratio, which is at an average of 0.17 times.
However, the company has shown positive results for the last 8 consecutive quarters, with its highest net sales at Rs 39.85 crore and PBDIT at Rs 4.17 crore. Its technical trend has also improved from Mildly Bullish on October 8, 2024, and has generated a return of 7.64% since then. Multiple factors, such as MACD, Bollinger Band, KST, DOW, and OBV, indicate a bullish trend for the stock.

With a ROE of 28.2, the stock is fairly valued with a price to book value of 5.8. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 121.28%, while its profits have increased by 137.2%. The PEG ratio of the company is 0.2, indicating a potential undervaluation.

The majority shareholders of Pee Cee Cosma Sope are its promoters, who have shown a market-beating performance in the long term as well as the near term. Along with generating a return of 121.28% in the last year, the stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company has shown poor long-term growth, with its net sales growing at an annual rate of 12.32% over the last 5 years. This may be a cause for concern for investors, but the company's current positive results and bullish technical trend may still make it a viable option for a 'Hold' in one's portfolio.