MarketsMOJO downgrades Nocil . to 'Sell' due to poor long-term growth and expensive valuation

Nocil ., a smallcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's poor long-term growth, with an annual rate of -12.19% in operating profit over the last 5 years.
In addition, the company's recent financial results for June 2024 have also been negative, with a -18.6% decrease in PAT(Q) and the lowest PBDIT(Q) at Rs 41.05 cr. The operating profit to net sales (Q) was also at its lowest at 11.03%. These factors contribute to the company's expensive valuation, with a ROE of 7.8 and a price to book value of 2.8.

Furthermore, the stock is currently trading at a premium compared to its average historical valuations. Although it has generated a return of 26.60% in the past year, its profits have only risen by 7.5%, resulting in a high PEG ratio of 5.2.

On the other hand, Nocil . does have a low debt to equity ratio and is technically in a mildly bullish range. Its MACD and KST technical factors are also bullish, indicating potential for growth.

However, it is worth noting that institutional investors have increased their stake in the company by 1.84% over the previous quarter and collectively hold 14.06% of the company. This suggests that these investors, who have better resources and capabilities to analyze company fundamentals, may have concerns about Nocil .'s future potential.

In conclusion, while Nocil . may have some positive technical indicators, the company's poor long-term growth and expensive valuation make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this smallcap chemical company.