Thirumalai Chemicals Downgraded to 'Sell' by MarketsMOJO, Poor Long-Term Growth and Negative Operating Profits

Thirumalai Chemicals, a smallcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 9, 2024. This decision was based on the company's poor long-term growth, with an annual operating profit rate of -12.95% over the last 5 years.
In addition, the company's recent results for June 2024 have been flat, with its ROCE (HY) at its lowest point of 0.30% and its DEBT-EQUITY RATIO (HY) at its highest point of 1.09 times. The DPR (Y) is also at its lowest point of -26.40%, indicating negative operating profits.

Furthermore, the stock is considered risky due to its negative operating profits and trading at a higher valuation compared to its historical average. Despite generating a return of 39.46% in the past year, the company's profits have fallen by -209.7%.

On a positive note, Thirumalai Chemicals has a low Debt to Equity ratio (avg) of 0 times and is currently in a Mildly Bullish range according to technical indicators such as MACD and KST. Additionally, institutional investors have increased their stake in the company by 0.74% in the previous quarter, collectively holding 2.79% of the company. This suggests that these investors, who have better resources and capabilities to analyze company fundamentals, have confidence in Thirumalai Chemicals.

Moreover, the company has a track record of market-beating performance in the long term as well as the near term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, considering the recent downgrade and negative operating profits, it may be wise for investors to approach this stock with caution.