MarketsMOJO Downgrades Akzo Nobel India to 'Hold' Amidst Mixed Performance

Akzo Nobel India, a midcap company in the paints industry, has recently been downgraded to a 'Hold' by MarketsMOJO on November 18, 2024. This decision was based on various factors, including the company's high management efficiency with a ROE of 20.50% and a low Debt to Equity ratio of 0 times.

Technically, the stock is currently in a Mildly Bullish range, with multiple indicators such as MACD, Bollinger Band, KST, DOW, and OBV showing a bullish trend. However, with a ROE of 30.5, the stock is fairly valued with a Price to Book Value of 11.9. It is also trading at a premium compared to its historical valuations.

In the past year, the stock has generated a return of 49.85%, outperforming the BSE 500. However, its profits have only risen by 9.6%, resulting in a high PEG ratio of 4.1. The majority shareholders of the company are the promoters, indicating their confidence in the company's performance.

While Akzo Nobel India has shown market-beating performance in the long term, it has also outperformed the BSE 500 in the last 3 years, 1 year, and 3 months. However, its long-term growth has been poor, with a net sales growth of only 7.20% and operating profit growth of 12.42% over the last 5 years.

In the latest quarter, the company's results were flat, with the DEBTORS TURNOVER RATIO(HY) at its lowest of 6.45 times. The PBT LESS OI(Q) has also fallen by -9.5% at Rs 122.70 crore, while the PAT(Q) has fallen by -9.2% at Rs 97.90 crore. Overall, while Akzo Nobel India has shown strong performance in the short term, its long-term growth and recent results have been lackluster, leading to a 'Hold' recommendation from MarketsMOJO.