Insecticides India Downgraded to 'Hold' by MarketsMOJO, Strong Debt Servicing and Positive Cash Flow Indicate Stable Position

Insecticides India, a smallcap company in the pesticides and agrochemicals industry, has recently been downgraded to a 'Hold' by MarketsMOJO on September 25, 2024. This decision was based on the company's current financial performance and market trends.
One of the main reasons for the downgrade is the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.74 times. This indicates a stable financial position and reduces the risk for investors.

In terms of recent results, Insecticides India has shown positive growth in its operating cash flow, with the highest at Rs 184.55 crore in June 2024. Its PBT LESS OI(Q) has also grown by 76.17% at Rs 62.91 crore, and its PAT(Q) has grown by 68.2% at Rs 49.01 crore.

Technically, the stock is currently in a mildly bullish range, with both its MACD and KST technical factors showing a bullish trend. Additionally, with a ROE of 10.1 and an attractive valuation of 2.6 Price to Book Value, the stock is trading at a discount compared to its average historical valuations.

In the past year, Insecticides India has generated a return of 91.88%, outperforming the BSE 500 index. However, its long-term growth has been poor, with an annual rate of -12.83% for operating profit over the last 5 years.

The majority shareholders of Insecticides India are its promoters, indicating their confidence in the company's future prospects. While the stock has shown market-beating performance in the long term, it is currently facing challenges in terms of growth. Investors are advised to hold their positions and monitor the company's performance closely.