DMCC Speciality Chemicals Receives 'Hold' Rating and Shows Strong Debt Servicing Ability

DMCC Speciality Chemicals, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0 times. Additionally, the company has shown positive results in December 2023, with a 144.74% growth in PAT (HY) and a lowest DEBT-EQUITY RATIO (HY) of 0.35 times.
Technically, the stock is in a Mildly Bullish range, with an improved trend from Sideways on 16-May-24. The MACD and KST technical factors are also Bullish. However, the company has shown poor long-term growth, with an annual rate of -24.03% in Operating profit over the last 5 years.

The company's ROCE of 7 indicates an Expensive valuation, with a 3.2 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 10.97%, while its profits have risen by 217.5%. The PEG ratio of the company is 0.3.

Despite its small size, domestic mutual funds hold only 0.02% of the company. This could signify that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth on-the-ground research on companies.

In the last 1 year, DMCC Speciality Chemicals has underperformed the market, with a return of 10.97% compared to the market's (BSE 500) return of 34.16%. While the stock may not be a top performer, it is still a good option for investors looking for a stable and debt-servicing company in the chemicals industry.