Thirumalai Chemicals Receives 'Hold' Rating from MarketsMOJO, Indicating Neutral Stance for Investors

Thirumalai Chemicals, a smallcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on September 16, 2024. This upgrade is based on various factors that indicate a neutral stance towards the stock.
One of the key reasons for the 'Hold' rating is the company's low Debt to Equity ratio, which is currently at 0 times. This indicates a healthy financial position and lower risk for investors. Additionally, the stock is currently in a bullish range and has shown a positive technical trend since September 13, 2024, with a return of 4.11%.

Moreover, institutional investors have also shown an increasing interest in Thirumalai Chemicals, with a 0.74% increase in their stake in the company over the previous quarter. This is a positive sign as these investors have better resources and capabilities to analyze the fundamentals of companies.

The stock has also outperformed the market (BSE 500) in the last year, with a return of 55.69%, compared to the market's return of 34.97%. However, the company's long-term growth has been poor, with an annual operating profit growth rate of -12.95% over the last 5 years.

In the latest quarter, the company's results have been flat, with a low ROCE (HY) of 0.30% and a high DEBT-EQUITY RATIO (HY) of 1.09 times. The DPR (Y) is also at its lowest at -26.40%, indicating a negative trend in operating profits.

Overall, while Thirumalai Chemicals has shown a strong market-beating performance in the last year, its long-term growth and recent flat results raise some concerns. The stock is currently trading at a higher risk compared to its historical valuations, with a decline of -209.7% in profits over the past year. Therefore, MarketsMOJO has given a 'Hold' rating for the stock, suggesting a neutral stance for investors.