MarketsMOJO downgrades Heubach Colorants India to 'Sell' after negative Q2 results

Heubach Colorants India, a smallcap company in the dyes and pigments industry, has recently been downgraded to 'Sell' by MarketsMOJO. This decision was based on the company's negative results in the quarter ending June 2024. The company's PBT LESS OI(Q) has fallen by -58.3%, with the lowest PAT(Q) at Rs 5.17 cr and NET SALES(Q) at Rs 173.38 cr.
The stock is currently in a Mildly Bearish range, with its technical trend deteriorating from Mildly Bullish on 13-Aug-24. Since then, it has generated -8.36% returns. The stocks MACD and DOW technical factors are also Mildly Bearish.

In the last 1 year, Heubach Colorants India has underperformed the market, with a return of only 1.31% compared to the market's (BSE 500) returns of 34.08%.

However, the company has a low Debt to Equity ratio (avg) at 0 times and has shown healthy long term growth with an annual rate of 45.33% in Operating profit. Its ROE of 6.6 also indicates an attractive valuation with a 2.3 Price to Book Value.

Despite these positive factors, the stock is currently trading at a fair value compared to its average historical valuations. In the past year, while the stock has generated a return of 1.31%, its profits have fallen by -0.8%.

Institutional investors have also shown an increasing interest in the company, with their stake increasing by 1.35% in the previous quarter. They currently hold 3.68% of the company, indicating their confidence in its fundamentals. Retail investors may want to take note of this and consider the analysis of these institutional investors before making any investment decisions.