Sukhjit Starch & Chemicals Receives 'Buy' Rating from MarketsMOJO for Strong Growth Potential

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 39.08%.
In addition, the company has shown positive results in June 2024, with its operating profit to interest ratio at a high of 4.52 times and a dividend payout ratio of 25.01%. It also has a strong cash position, with cash and cash equivalents of Rs 15.56 crore.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since August 8, 2024. The MACD and KST technical factors are also bullish, indicating a positive trend for the stock.

Moreover, Sukhjit Starch & Chemicals has an attractive valuation with a ROCE of 12.6 and a 1.4 enterprise value to capital employed. It is currently trading at a discount compared to its historical valuations.

However, there are some risks to consider when investing in this stock. Despite its potential, domestic mutual funds hold only 0% of the company, which may indicate a lack of confidence in the stock or its business. Additionally, the stock has underperformed the market in the last year, with a return of 18.98% compared to the market's 33.41%.

Overall, Sukhjit Starch & Chemicals shows promise for long-term growth and has received a 'Buy' rating from MarketsMOJO. However, investors should carefully consider the risks involved before making any investment decisions.