Sukhjit Starch & Chemicals Downgraded to 'Sell' by MarketsMOJO Due to Flat Results and Low ROCE

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on March 6, 2024. This decision was based on the company's flat results in December 2023, with a negative growth of -21.60% in its PAT (profit after tax) for the first 9 months of the fiscal year. Additionally, the company's ROCE (return on capital employed) for the half-year was at its lowest at 11.60%.
One of the reasons for this downgrade is the fact that despite being a microcap company, domestic mutual funds hold a mere 0% stake in Sukhjit Starch & Chemicals. This could indicate that either the mutual funds are not comfortable with the company's current price or they have concerns about its business.

Furthermore, the company has underperformed the market in the last year, with a return of only 26.10% compared to the market's return of 36.15%. However, there are some positive factors to consider, such as the healthy long-term growth of the company's operating profit, which has grown at an annual rate of 39.08%.

In terms of technical trends, the stock is currently in a sideways trend, indicating no clear price momentum. This trend has worsened since March 6, 2024, with a return of -2.71%. Additionally, with an ROCE of 12, the stock is currently trading at an attractive valuation with a 1.3 enterprise value to capital employed.

Despite these positive factors, it is important to note that over the past year, while the stock has generated a return of 26.10%, its profits have fallen by -25.8%. This could be a cause for concern for potential investors.

In conclusion, Sukhjit Starch & Chemicals may not be a suitable investment option at this time, as indicated by the recent downgrade to 'Sell' by MarketsMOJO. The company's flat results, low ROCE, and underperformance in the market are all factors to consider before making any investment decisions.