Deep Polymers Receives 'Hold' Rating from MarketsMOJO, Shows Healthy Long-Term Growth

Deep Polymers, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown healthy long-term growth, with its net sales increasing by an annual rate of 4.88% and operating profit by 162.68%.
Technically, the stock is currently in a Mildly Bullish range, with the trend improving from Sideways on 16-May-24. Multiple factors, such as MACD, KST, and OBV, also indicate a Mildly Bullish sentiment for the stock.

In terms of valuation, Deep Polymers has a ROCE of 9.3 and a fair Enterprise value to Capital Employed ratio of 2.3. The stock is currently trading at a discount compared to its average historical valuations. However, over the past year, while the stock has generated a return of 1.30%, its profits have fallen by -13.8%.

The majority shareholders of Deep Polymers are its promoters. In the last quarter of 2023, the company reported flat results with the lowest net sales of Rs 23.34 crore. This has led to the stock underperforming the market in the last year, with a return of only 1.30% compared to the market's (BSE 500) return of 34.16%.

Overall, while Deep Polymers shows potential for long-term growth, its recent performance and current valuation suggest a 'Hold' rating for now. Investors should keep an eye on the company's future results and market trends before making any investment decisions.