Tuticorin Alkali Chemicals & Fertilizers Upgraded to 'Hold' by MarketsMOJO

Tuticorin Alkali Chemicals & Fertilizers, a smallcap company in the chemicals industry, has recently been upgraded to a 'Hold' by MarketsMOJO on August 22, 2023. This decision is based on various factors that indicate a positive outlook for the company.
One of the main reasons for the upgrade is the healthy long-term growth of the company. Tuticorin Alkali Chemicals & Fertilizers has shown an annual growth rate of 25.19% in its net sales, which is a promising sign for its future prospects.

Technically, the stock is currently in a bullish range and has shown a significant improvement since December 2023. It has generated a return of 8.47% since then, with multiple factors such as MACD, Bollinger Band, KST, and DOW indicating a bullish trend.

Moreover, the company has consistently outperformed the BSE 500 index in the last three annual periods, with a return of 95.05% in the last year alone.

However, the company's results for September 2023 were flat, with a decrease of 12.3% in PBT LESS OI(Q) and the lowest net sales of Rs 89.58 crore. Additionally, with a ROCE of 593.1, the company's valuation is considered to be very expensive, with an enterprise value to capital employed ratio of 95.1.

Despite this, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 95.05%, its profits have also increased by 186.6%, resulting in a low PEG ratio of 0.1.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0.01% of the company. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

In conclusion, while Tuticorin Alkali Chemicals & Fertilizers shows potential for growth, it is currently recommended to hold the stock and monitor its performance closely. Investors should also consider the company's high valuation and the lack of interest from domestic mutual funds before making any investment decisions.