Ishan Dyes & Chemicals Downgraded to 'Sell' by MarketsMOJO, Technical Trend Deteriorates

Ishan Dyes & chemicals, a microcap company in the dyes and pigments industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 18, 2024. This decision was based on the company's weak long-term fundamental strength, with a -181.98% CAGR growth in operating profits over the last 5 years. Additionally, the stock has consistently underperformed against the benchmark over the last 3 years and has generated -5.09% returns in the last 1 year.
Despite declaring positive results for the last 3 consecutive quarters, with a growth in net profit of 50%, the company's technical trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated from mildly bullish on November 18, 2024, and has generated -4.31% returns since then.

On a positive note, Ishan Dyes & chemicals reported very positive results in September 2024, with a higher PAT (HY) of Rs 2.20 crore and a 25.3% growth in net sales (Q) at Rs 30.58 crore. The company also has an attractive valuation with a ROCE of -1 and a 1.1 enterprise value to capital employed. It 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 -5.09%, its profits have risen by 256.4%, resulting in a PEG ratio of 0.1.

It is worth noting that the majority of shareholders in Ishan Dyes & chemicals are non-institutional investors. This information, along with the company's recent downgrade to 'Sell', may be important for investors to consider before making any investment decisions.