Shree Digvijay Cement Co. Downgraded to 'Hold' by MarketsMOJO Despite Strong Quarterly Results

Shree Digvijay Cement Co. has recently been downgraded to a 'Hold' by MarketsMOJO due to its low Debt to Equity ratio and positive results in the last quarter. The company has shown a strong Return on Capital Employed (ROCE) of 31.57% and has recorded its highest Net Sales and Profit After Tax in the last quarter. The stock is currently in a Mildly Bullish range and its technical factors, such as MACD and KST, are also Bullish.
With a ROE of 23, the company has an attractive valuation with a Price to Book Value of 4.1. It is currently trading at a fair value compared to its average historical valuations. In the past year, the stock has outperformed the market (BSE 500) with a return of 41.52%, while its profits have increased by 51.1%. The PEG ratio of the company is 0.4, indicating a good potential for future growth.

However, the company has shown poor long-term growth with a 5-year annual growth rate of only 16.36% in Net Sales. Institutional investors have also decreased their stake in the company, holding only 2.61% collectively. This could be a cause for concern as institutional investors have better resources and capabilities to analyze the fundamentals of companies.

Overall, while Shree Digvijay Cement Co. has shown positive results in the last quarter and has a strong ROCE, its long-term growth and decreasing participation by institutional investors may be a reason for the downgrade to a 'Hold' by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.