Techno Electric & Engineering Co. Downgraded to 'Hold' by MarketsMOJO: Here's Why

Techno Electric & Engineering Company, a midcap capital goods company, has recently been downgraded to a 'Hold' by MarketsMOJO on October 21, 2024. This decision was based on various factors, including the company's low Debt to Equity ratio, positive results for the last 4 consecutive quarters, and its technical position in a mildly bullish range.
One of the key reasons for the downgrade is the company's poor long-term growth, with an annual operating profit growth rate of -13.40% over the last 5 years. However, the company has shown consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

The stock also has a high institutional holding of 33.93%, indicating that these investors have better resources and capabilities to analyze the company's fundamentals. Their stake has also increased by 1.08% over the previous quarter.

Despite its recent positive performance, the stock is currently trading at a premium compared to its historical valuations. With a ROE of 12.5 and a price to book value of 8.8, the stock is considered to have a very expensive valuation. Additionally, while the stock has generated a return of 219.15% in the last year, its profits have only risen by 100.9%, resulting in a PEG ratio of 0.7.

Overall, while Techno Electric & Engineering Company has shown positive results in the short term, its long-term growth and expensive valuation have led to a 'Hold' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.