Sukhjit Starch & Chemicals Receives 'Hold' Rating from MarketsMOJO, Shows Potential for Long-Term Growth

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on May 14, 2024. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 39.08%.
Technically, the stock is currently in a Mildly Bullish range, with a positive trend since May 13, 2024, resulting in a 1.92% return. The MACD and KST technical factors also indicate a bullish trend.

In terms of valuation, Sukhjit Starch & Chemicals has an attractive ROCE of 12 and a low enterprise value to capital employed ratio of 1.3. Additionally, the stock is currently trading at a discount compared to its historical valuations.

However, the company's profits have fallen by -25.8% in the past year, despite generating a return of 10.52%. This can be attributed to flat results in December 2023, with a -21.60% growth in PAT (9M) and a lowest ROCE (HY) of 11.60%.

It is worth noting that despite its size, domestic mutual funds hold only 0% of Sukhjit Starch & Chemicals. This could indicate that they are either not comfortable with the current price or the business itself.

In the last year, the stock has underperformed the market, with a return of 10.52% compared to the market's (BSE 500) return of 32.70%. While the company has shown potential for long-term growth, investors may want to hold off on investing until there is more stability in its financial performance.