Symphony Ltd. Downgraded to 'Hold' by MarketsMOJO, Stock Currently in Mildly Bullish Range

Symphony Ltd., a midcap company in the domestic appliances industry, has recently been downgraded to a 'Hold' by MarketsMOJO on April 23, 2024. This decision was based on various factors, including the company's high management efficiency with a ROE of 17.25% and a low Debt to Equity ratio of 0 times on average.

The company has also shown positive results in December 2023, with the highest DEBTORS TURNOVER RATIO (HY) at 21.52 times, PBDIT(Q) at Rs 44.00 cr., and PBT LESS OI(Q) at Rs 35.00 cr. However, despite these positive indicators, the stock is currently in a Mildly Bullish range, with multiple factors such as MACD, Bollinger Band, and OBV being bullish.

On the other hand, the company has shown poor long-term growth, with an annual rate of -12.06% in operating profit over the last 5 years. Additionally, with a ROE of 17, the stock is currently trading at an expensive valuation of 9.7 Price to Book Value, which is a premium compared to its average historical valuations. In the past year, while the stock has generated a return of -2.88%, its profits have also fallen by -28.3%.

Moreover, there has been a decrease in participation by institutional investors, with a -0.85% decrease in their stake over the previous quarter. These investors, who have better capability and resources to analyze company fundamentals, currently hold 13.59% of the company.

Furthermore, Symphony Ltd. has consistently underperformed against the benchmark over the last 3 years, with -2.88% returns in the last 1 year and underperformance against BSE 500 in each of the last 3 annual periods. While the stock may have potential for growth in the future, it is currently recommended to hold off on investing in Symphony Ltd. until there is a more positive outlook for the company's performance.