Sukhjit Starch & Chemicals downgraded to 'Hold' by MarketsMOJO on recent performance and technical trends

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, has recently been downgraded to a 'Hold' by MarketsMOJO on August 13, 2024. This decision was based on the company's recent performance and technical trends.
While the company has shown healthy long-term growth with an annual operating profit growth rate of 39.08%, its recent results in June 2024 have been positive. The company's operating profit to interest ratio was the highest at 4.52 times, while its dividend payout ratio was also the highest at 25.01%. Additionally, the company has a strong cash position with cash and cash equivalents of Rs 15.56 crore.

Technically, the stock is currently in a mildly bullish range and has shown improvement since August 8, 2024, generating a return of -4.01%. The MACD and KST technical factors are also bullish, indicating a positive trend for the stock.

With a ROCE of 12.6, the company has an attractive valuation with a 1.3 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations. However, despite generating a return of 14.39% in the past year, the company's profits have fallen by -3.2%.

One interesting aspect to note is that despite being a microcap company, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the company's current price or its business, as domestic mutual funds have the capability to conduct in-depth research on companies.

In the last year, Sukhjit Starch & Chemicals has underperformed the market, generating a return of 14.39% compared to the market's (BSE 500) return of 34.08%. This could be a cause for concern for investors, but it is important to note that the company is still showing positive long-term growth and has a strong cash position. Overall, the stock is currently rated as a 'Hold' by MarketsMOJO, indicating a neutral stance on its future potential.