MarketsMOJO Upgrades Dutron Polymers to 'Hold' Based on Technical Analysis and Valuation Metrics

MarketsMOJO has recently upgraded its stock call on Dutron Polymers to 'Hold' based on technical analysis and valuation metrics. The stock has been in a bullish range and the technical trend has improved from mildly bullish to bullish on July 26, 2024. This is supported by factors such as MACD, Bollinger Band, and KST.
Despite a fair valuation with a ROCE of 12.2 and a 3.4 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its historical valuations. However, it is important to note that while the stock has generated a return of 41.37% over the past year, its profits have fallen by -5.8%.

The majority shareholders of Dutron Polymers are the promoters, indicating their confidence in the company. However, the company has shown poor long-term growth with only a 2.31% annual growth in net sales and 0.31% in operating profit over the last 5 years.

In the latest quarter, the company reported negative results with a -15.1% decrease in net sales and the lowest PBDIT and operating profit to net sales ratio. This could be a cause for concern for investors.

Overall, while MarketsMOJO has upgraded its stock call to 'Hold', it is important for investors to carefully consider the company's financial performance and future prospects before making any investment decisions.