Kopran downgraded to 'Hold' by MarketsMOJO due to mixed factors.

Kopran, a smallcap pharmaceutical company, has recently been downgraded to a 'Hold' by MarketsMOJO on November 11, 2024. This decision was based on various factors, including the company's ability to service debt, positive financial results, technical analysis, and valuation.
One of the main reasons for the downgrade is the company's low Debt to EBITDA ratio of 1.16 times, indicating a strong ability to manage its debt. Additionally, Kopran has declared positive results for the last four consecutive quarters, with significant growth in PBT LESS OI(Q) at Rs 12.10 crore (891.80%), PAT(Q) at Rs 11.10 crore (300.7%), and NET SALES(HY) at Rs 325.52 crore (22.43%).

From a technical standpoint, the stock is currently in a mildly bullish range, with multiple indicators such as MACD, Bollinger Band, KST, and OBV showing a bullish trend. Moreover, with a ROCE of 10.7 and an attractive valuation of 2.7 Enterprise value to Capital Employed, the stock is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 33.62%, while its profits have risen by 164.5%, resulting in a low PEG ratio of 0.2.

Another positive aspect for Kopran is the increasing participation by institutional investors, who have collectively increased their stake by 0.73% over the previous quarter and now hold 1.54% of the company. This indicates that these investors, who have better resources and capabilities to analyze company fundamentals, have shown confidence in Kopran's potential.

However, one concern for the company is its poor long-term growth, with net sales growing at an annual rate of 10.80% and operating profit at 14.86% over the last five years. This may have contributed to the downgrade by MarketsMOJO.

In conclusion, while Kopran has shown positive financial results and has attracted institutional investors, its long-term growth may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.