Sandhar Technologies Limited downgraded to 'Hold' by MarketsMOJO, despite positive recent performance

Sandhar Technologies Limited, a smallcap company in the auto ancillary industry, has recently been downgraded to a 'Hold' by MarketsMOJO on August 29, 2024. This decision was based on various factors, including the company's low Debt to Equity ratio of 0.50 times, which is below the industry average.
However, the company has shown positive results for the last 5 consecutive quarters, with its ROCE (HY) reaching a high of 11.48% and its Inventory Turnover Ratio (HY) at 10.45 times. In addition, its PBT LESS OI (Q) has grown at a rate of 21.22%.

Technically, the stock is currently in a Mildly Bullish range, with multiple factors such as MACD, KST, DOW, and OBV indicating a bullish trend. Moreover, with a ROCE of 10.9, the stock is currently trading at an attractive valuation with a 2.5 Enterprise value to Capital Employed.

Despite its recent performance, the stock is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 58.52%, while its profits have risen by 42.4%. The PEG ratio of the company is also at a favorable level of 0.7.

The majority shareholders of Sandhar Technologies Limited are the promoters, indicating their confidence in the company's future prospects. The stock has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company has shown poor long-term growth, with its Operating Profit growing at an annual rate of -7.62% over the last 5 years. This may be a cause for concern for investors, and MarketsMOJO's downgrade to 'Hold' may be a reflection of this. As always, it is important for investors to conduct their own research and make informed decisions before investing in any stock.