Shree Digvijay Cement Co. Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth and Underperformance

Shree Digvijay Cement Co., a smallcap company in the cement industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 11, 2024. This decision was based on the company's poor long-term growth, with net sales only growing at an annual rate of 10.83% over the last 5 years. In addition, the company's results for the quarter ending June 2024 showed a decline in both PBT (profit before tax) and PAT (profit after tax) by 52.8% and 48.6%, respectively. The company also has a low cash and cash equivalents balance of Rs. 13.84 crore.
Technically, the stock is in a mildly bearish range and the technical trend has deteriorated from mildly bullish on September 11, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bearish outlook for the stock.

Despite being a smallcap company, domestic mutual funds hold only 0% of the company, which could suggest that they are not comfortable with the company's current price or business. The company has also underperformed the market in the last year, with a return of only 3.16% compared to the market's return of 32.75%.

On a positive note, Shree Digvijay Cement Co. has a low debt to equity ratio and a very attractive valuation with a price to book value of 3.8. The stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has only generated a return of 3.16%, its profits have increased by 40.6%, resulting in a PEG ratio of 0.5.

Overall, the recent downgrade of Shree Digvijay Cement Co. to a 'Sell' by MarketsMOJO highlights the company's poor long-term growth and underperformance in the market. Investors should carefully consider these factors before making any investment decisions.