SKM Egg Products Export (India) upgraded to 'Hold' by MarketsMOJO, but caution advised

SKM Egg Products Export (India) is a microcap company in the FMCG industry. Recently, MarketsMOJO has upgraded its stock call to 'Hold' on 2024-08-26. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 159.16%.
Technically, the stock is in a mildly bullish range and has shown improvement from a mildly bearish trend on 26-Aug-24. The Bollinger Band and OBV technical factors are also bullish. Additionally, with a return on equity of 30.8, the stock is currently trading at a discount compared to its average historical valuations, making it a very attractive valuation with a price to book value of 2.7.

However, in the past year, the stock has generated negative returns of -28.15%, while its profits have fallen by -40.3%. In the latest quarter, the company declared very negative results with a fall in EPS of -43.39%. This is the third consecutive quarter of negative results for the company. In fact, the company has declared negative results in six out of the last seven quarters.

Institutional investors have also decreased their stake in the company by -1.43% in the previous quarter, collectively holding only 0.77% of the company. This indicates a lack of confidence in the company's fundamentals.

Furthermore, the stock has underperformed the market (BSE 500) in the last year, generating negative returns of -28.15% while the market has generated returns of 39.36%.

In conclusion, while SKM Egg Products Export (India) has shown potential for long-term growth, its recent financial performance and lack of interest from institutional investors suggest a cautious approach. Investors may want to hold onto their current positions and monitor the company's performance closely before making any further investment decisions.