Sukhjit Starch & Chemicals Receives 'Sell' Rating from MarketsMOJO, Downgraded Due to Flat Results and Low ROCE

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, has recently received a 'Sell' rating from MarketsMOJO on May 9, 2024. This downgrade is based on the company's flat results in December 2023, with a negative growth of -21.60% in its PAT (9M) at Rs 38.08 crore and a low ROCE (HY) of 11.60%.
One of the reasons for this downgrade is the fact that despite being a microcap company, domestic mutual funds hold only 0% of the company. This could indicate that either they are not comfortable with the current price or they have concerns about the company's business.

In addition, Sukhjit Starch & Chemicals has underperformed the market in the last year, with a return of only 12.37%, compared to the market's (BSE 500) return of 31.00%.

However, there are some positive factors to consider. The company has shown healthy long-term growth, with an annual rate of 39.08% in operating profit. Additionally, the stock is currently trading at 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.

On the technical side, the trend for the stock is currently sideways, indicating no clear price momentum. The technical trend has deteriorated since May 9, 2024, when it was mildly bullish, and has generated a return of -2.46% since then.

Overall, while Sukhjit Starch & Chemicals may have some positive aspects, the recent downgrade to a 'Sell' rating by MarketsMOJO suggests caution for potential investors. It is important to carefully consider all factors before making any investment decisions.