TTK Healthcare Downgraded to 'Sell' by MarketsMOJO: What Investors Need to Know

TTK Healthcare, a smallcap pharmaceutical and drugs company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 4, 2024. This decision was based on several factors, including poor long-term growth with an annual rate of -7.00% in operating profit over the last 5 years. Additionally, the company's recent results for September 2024 have been flat, with the inventory turnover ratio at its lowest at 7.33 times and non-operating income accounting for 76.33% of profit before tax.
One notable aspect is that despite its size, domestic mutual funds hold only 0.01% of the company. This could indicate that they are not comfortable with the company's current price or business, as domestic mutual funds have the capability to conduct in-depth research on companies.

Other factors to consider include the company's low debt to equity ratio and a sideways technical trend, indicating no clear price momentum. The technical trend has also deteriorated from mildly bullish on November 4, 2024, and has generated a -0.3% return since then.

TTK Healthcare currently has a fair valuation with a price to book value of 2.1 and a return on equity of 6.2. However, the stock is trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 23.18%, while its profits have only risen by 2.2%. This results in a PEG ratio of 15.7, which may be a cause for concern for potential investors.

In conclusion, TTK Healthcare's recent downgrade to 'Sell' by MarketsMOJO highlights several concerning factors, including poor long-term growth, low interest from domestic mutual funds, and a high PEG ratio. Investors should carefully consider these factors before making any decisions regarding this smallcap pharmaceutical and drugs company.