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

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown 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 the technical trend improving from Sideways on 18-Jul-24. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

In terms of valuation, Sukhjit Starch & Chemicals has an attractive ROCE of 12.6 and a low enterprise value to capital employed ratio of 1.4. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

However, the company's profits have fallen by -21.2% in the past year, despite generating a return of 20.55%. This can be attributed to the flat results in March 2024, with a -10.1% decrease in PAT(Q).

It is worth noting that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

Overall, Sukhjit Starch & Chemicals has underperformed the market in the last year, with a return of 20.55% compared to the BSE 500's return of 36.87%. While the company has shown promising growth, investors may want to hold off on investing until there is more stability in its profits.