Standard Industries Receives 'Hold' Rating from MarketsMOJO, Stock Shows Stable Financial Position

Standard Industries, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on July 5th, 2024. This upgrade comes as the company's stock has shown a low Debt to Equity ratio, indicating a stable financial position.
Technically, the stock is currently in a Bullish range, with multiple factors such as MACD, Bollinger Band, and KST showing positive trends. However, the technical trend has deteriorated from Bullish on July 4th, 2024, and has generated a return of 12.5% since then.

One of the key factors contributing to the 'Hold' rating is the high institutional holdings of 42.91%. These investors have better resources and capabilities to analyze the fundamentals of companies, making their opinion on the stock valuable.

On the downside, the company has shown poor long-term growth, with an annual rate of -2.22% in operating profit over the last 5 years. In the latest quarter, the company's results were flat, with a decrease of -56.96% in PAT (HY) and a lowest ROCE (HY) of -1.62%. Additionally, the non-operating income (Q) is at a high of 191.67% of Profit Before Tax (PBT), indicating a reliance on non-operating activities for profits.

The stock is also considered risky due to its negative EBITDA and trading at a higher valuation compared to its historical average. In the past year, while the stock has generated a return of 16.66%, its profits have fallen by -100.6%. However, the company does offer a high dividend yield of 2.5% at the current price.

In the last year, Standard Industries has underperformed the market, with a return of 16.66% compared to the market (BSE 500) return of 37.85%. This could be a cause for concern for investors, but with the recent 'Hold' rating, it is advised to closely monitor the company's performance before making any investment decisions.