Shree Cement Downgraded to 'Hold' by MarketsMOJO Due to Mixed Financial Performance

Shree Cement, a leading player in the cement industry, has recently been downgraded to a 'Hold' by MarketsMOJO. This decision was based on the company's current financial performance and market trends.
One of the main reasons for the downgrade is the company's low Debt to Equity ratio, which is at an average of 0.02 times. This indicates a strong financial position and stability for the company.

However, Shree Cement has shown positive results for the last 3 consecutive quarters, with a growth of 90.51% in PBT LESS OI(Q) at Rs 657.46 crore. The company also has the lowest Debt to Equity ratio (HY) at 0.08 times and the highest NET SALES(Q) at Rs 5,432.81 crore.

Technically, the stock is in a Mildly Bullish range, with its MACD and KST technical factors also showing a Bullish trend. Additionally, the company has a high institutional holding of 24.87%, indicating that these investors have better capability and resources to analyze the fundamentals of the company.

However, Shree Cement has shown poor long-term growth, with an annual growth rate of -0.10% in Operating profit over the last 5 years. This could be a concern for investors looking for long-term returns.

Moreover, with a ROE of 11.6, the company has a Very Expensive valuation with a 4.6 Price to Book Value. However, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated a return of 10.25%, its profits have risen by 88.5%, resulting in a PEG ratio of 0.5. This indicates that the stock may be undervalued and has the potential for future growth.

Overall, Shree Cement has underperformed the market in the last 1 year, with a return of 10.25% compared to the market's (BSE 500) return of 32.89%. This could be a reason for the downgrade to a 'Hold' by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.