Vinyl Chemicals (I) Downgraded to 'Sell' by MarketsMOJO, Underperforms BSE 500

Vinyl Chemicals (I) has recently been downgraded to a 'Sell' by MarketsMOJO due to its flat results in the June 2024 quarter. The company's PBT LESS OI(Q) has fallen by -5.6% and its PAT(Q) has fallen by -9.9%. This has resulted in a ROE of 19.9, making the stock very expensive with a 6.1 Price to Book Value. In addition, the stock is currently trading at a premium compared to its average historical valuations.
Despite being a microcap company, domestic mutual funds hold only 0.01% of the company, indicating that they may not be comfortable with the current price or the business. This is further supported by the fact that the stock has generated a return of -12.72% in the past year, while its profits have fallen by -17.6%.

Moreover, Vinyl Chemicals (I) has underperformed the BSE 500 in the last 3 years, 1 year, and 3 months, showing below par performance in both the long term and near term. The company also has a low Debt to Equity ratio, which is a positive factor.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated since October 3, 2024, when it was mildly bullish, resulting in a -4.06% return since then.

In conclusion, with its recent downgrade to 'Sell' and below par performance, investors may want to reconsider their position in Vinyl Chemicals (I). However, it is worth noting that the company has a low Debt to Equity ratio and domestic mutual funds may have more insight into the business. As always, it is important for investors to conduct their own research and make informed decisions.