Suraj Products downgraded to 'Hold' by MarketsMOJO, despite strong growth and bullish trend.

Suraj Products, a microcap company in the iron and steel industry, has recently been downgraded to a 'Hold' by MarketsMOJO on February 7, 2024. This decision was based on various factors, including the company's healthy long-term growth, positive results for the last four consecutive quarters, and technical trend in a bullish range.
One of the main reasons for the 'Hold' rating is the company's consistent growth in net sales, which has grown at an annual rate of 26.41%. Additionally, the operating profit has also seen a significant increase at 31.12%. In the last quarter, the net sales grew by 58.12%, and the company's cash and cash equivalents were at a record high of Rs 38.04 crore. The debtors turnover ratio was also at its highest at 45.21 times.

From a technical standpoint, the stock is currently in a bullish range and has generated a return of 27.26% since January 15, 2024. Multiple factors, such as MACD, Bollinger Band, KST, and DOW, indicate a bullish trend for the stock.

Moreover, with a return on equity of 26.2, the stock is fairly valued with a price to book value of 5. It is also trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 281.88%, while its profits have increased by 33%. This results in a PEG ratio of 0.6, indicating a good investment opportunity.

Another positive aspect of Suraj Products is its consistent returns over the last three years. The stock has outperformed BSE 500 in each of the last three annual periods, further solidifying its potential as a good investment.

However, despite its promising growth and potential, it is worth noting that domestic mutual funds hold only 0% of the company. This could signify that they are either not comfortable with the current price or have not conducted in-depth research on the company due to its microcap size.

In conclusion, while Suraj Products shows promising growth and a bullish trend, the 'Hold' rating by MarketsMOJO suggests caution for potential investors. It is important to conduct thorough research and consider all factors before making any investment decisions.