Shaily Engineering Plastics Upgraded to 'Hold'

Shaily Engineering Plastics, a smallcap company in the plastic products industry, has recently been upgraded to a 'Hold' by MarketsMOJO on 2023-12-05. This upgrade comes as the stock has shown a technical trend improvement from Sideways to Mildly Bullish on 01-Dec-23, with a 3.77% return since then. The MACD and Bollinger Band technical factors also indicate a Bullish trend. However, the company's long term growth has been poor, with Net Sales growing at an annual rate of 10.77% and Operating profit at 6.77% over the last 5 years. In addition, the results for Sep 23 were flat. The company also has a Very Expensive valuation with a 2.8 Enterprise value to Capital Employed and is trading at a premium compared to its average historical valuations. Moreover, in the past year, while the stock has generated a return of -2.21%, its profits have fallen by -5.1%. This underperformance is evident when compared to the market (BSE 500) which has generated returns of 16.72% in the same period. It is worth noting that Shaily Engineering Plastics has a high institutional holding of 20.83%, indicating that these investors have better capability and resources to analyze the fundamentals of the company compared to most retail investors. In conclusion, while the recent technical trend and institutional holding may be positive for Shaily Engineering Plastics, the company's poor long term growth and underperformance in the market raise concerns. Investors may want to hold off on investing in this smallcap company until there is a significant improvement in its fundamentals.