Suraj Products Downgraded to 'Sell' by MarketsMOJO After Negative Results

Suraj Products, a microcap company in the iron and steel industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 11, 2024. This downgrade comes after the company reported negative results in the March 2024 quarter, breaking a streak of four consecutive positive quarters.
The company's profits have fallen by 23.5% to Rs 5.82 crore and its net sales have also decreased by 10.30% to Rs 92.09 crore in the last quarter. Its PBDIT has reached its lowest at Rs 10.92 crore. With a ROE of 24.7, the company's valuation is considered expensive with a price to book value of 7.2. However, the stock is currently trading at a discount compared to its historical valuations.

Despite its healthy long-term growth with an annual net sales growth rate of 24.26% and operating profit growth rate of 31.12%, domestic mutual funds hold only 0% of the company. This could indicate that they are either not comfortable with the current price or the business itself.

On a positive note, the stock is currently in a mildly bullish range and has shown improvement in its technical trend since July 10, 2024. It has also generated a return of -2.51% since then. Multiple technical factors such as MACD, Bollinger Band, KST, DOW, and OBV are also bullish for the stock.

In the last 3 years, Suraj Products has consistently outperformed the BSE 500 index, generating a return of 335.47%. However, it is important to note that this high return may not be sustainable in the long run.

Overall, while Suraj Products may have potential for long-term growth, the recent downgrade and negative results suggest caution for investors. It is important to thoroughly research and analyze the company before making any investment decisions.