Albert David . Downgraded to 'Hold' by MarketsMOJO Despite Strong Financial Performance

Albert David ., a microcap pharmaceutical company, has recently been downgraded to a 'Hold' by MarketsMOJO on August 5th, 2024. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times.
However, the company has shown positive results for the last four consecutive quarters, with a PAT(Q) of Rs 12.91 crore, which has grown at an impressive rate of 246.1%. Additionally, its ROCE(HY) is at its highest at 25.27%, and it has a strong cash position with CASH AND CASH EQUIVALENTS(HY) at Rs 31.16 crore.

Technically, the stock is in a Mildly Bullish range, with both its MACD and KST technical factors showing a Bullish trend. With a ROE of 19.7, the company also has a Very Attractive valuation with a 1.8 Price to Book Value. Furthermore, the stock is currently trading at a fair value compared to its average historical valuations.

In the past year, the stock has outperformed the market (BSE 500) with a return of 51.56%, while its profits have risen by 108.5%. This is reflected in the company's low PEG ratio of 0.1, indicating its market beating performance.

However, one area of concern is the company's poor long-term growth, with Net Sales only growing at an annual rate of 2.72% over the last 5 years. This could be a factor in the downgrade by MarketsMOJO.

Another interesting point to note is that despite its size, domestic mutual funds hold only 0.04% of the company. This could suggest that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while Albert David . has shown strong financial performance in recent quarters, its long-term growth and lack of interest from domestic mutual funds may have contributed to its downgrade to a 'Hold' by MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this microcap pharmaceutical company.