MarketsMOJO downgrades KMC Speciality Hospitals (India) stock to 'Sell' on multiple factors

KMC Speciality Hospitals (India) is a smallcap company in the healthcare services industry. However, recent news from MarketsMOJO has downgraded their stock call to 'Sell' on June 21, 2024.
The downgrade is based on several factors, including flat results in March 2024, with the lowest ROCE (Return on Capital Employed) at 18.50% and cash and cash equivalents at Rs 22.68 crore. Additionally, the PAT (Profit After Tax) for the quarter has fallen by -7.2%.

Technically, the stock is in a mildly bearish range and has shown a deterioration in trend since June 21, 2024, with a return of 1.83%. The MACD and KST technical factors are also bearish.

Furthermore, with an ROCE of 18.8, the stock is considered to have an expensive valuation with an enterprise value to capital employed ratio of 7.1. It is also trading at a premium compared to its average historical valuations. Although the stock has generated a return of 25.89% in the past year, its profits have only risen by 13.9%, resulting in a PEG ratio of 3.3.

Another concerning factor is that despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business itself.

In the last year, the stock has underperformed the market, with a return of 25.89% compared to the market's (BSE 500) return of 36.15%.

On a positive note, the company has a low debt to equity ratio (average) of 0.06 times, which could be seen as a strength.

In conclusion, based on the current financial and technical factors, MarketsMOJO has downgraded their stock call on KMC Speciality Hospitals (India) to 'Sell'. Investors should carefully consider these factors before making any decisions regarding this stock.