Rupa & Company downgraded to 'Hold' by MarketsMOJO due to mixed performance

Rupa & Company, a smallcap company in the lifestyle industry, has recently been downgraded to a 'Hold' by MarketsMOJO on August 12, 2024. This decision was based on the company's financial performance and technical indicators.
One of the main reasons for the downgrade is the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.13 times. This indicates that the company has a good financial standing and is able to manage its debt effectively.

In terms of financial results, Rupa & Company has shown positive growth in the last 4 consecutive quarters. Its PBT LESS OI(Q) has grown by 256.34% and PAT(Q) has grown by 147.9%. The company also has a high cash reserve of Rs 220.97 crore, which is the highest in the last half year.

Technically, the stock is currently in a Mildly Bullish range, with both its MACD and KST technical factors showing a Bullish trend. Additionally, with a ROE of 7.6 and a Price to Book Value of 2.5, the stock is considered to be attractively valued. It is also trading at a discount compared to its average historical valuations.

However, Rupa & Company has shown poor long-term growth, with Net Sales growing at an annual rate of 1.19% and Operating profit at -5.53% over the last 5 years. This may be a cause for concern for investors.

In the last 1 year, the stock has underperformed the market, generating a return of only 8.22% compared to the market (BSE 500) returns of 35.35%. This may be a reason for the downgrade to 'Hold'.

Overall, while Rupa & Company has shown positive financial results and technical indicators, its long-term growth and recent underperformance in the market may be a cause for caution for investors. MarketsMOJO has downgraded the stock to 'Hold' and it is recommended to closely monitor the company's performance before making any investment decisions.