Nitta Gelatin India Downgraded to 'Hold' by MarketsMOJO, But Shows Strong Financial Performance and Bullish Trend

Nitta Gelatin India, a microcap company in the chemicals industry, has recently been downgraded to a 'Hold' by MarketsMOJO on January 24, 2024. This decision was based on the company's low Debt to Equity ratio of 0.40 times, indicating a healthy financial position. Additionally, the company has shown consistent growth in its operating profit, with an annual rate of 60.09%.
In the last 8 consecutive quarters, Nitta Gelatin India has declared positive results, with its PAT (HY) growing at an impressive rate of 81.69%. Its operating cash flow (Y) is also at its highest at Rs 101.04 crore, while its ROCE (HY) is at a peak of 39.01%. These factors contribute to the company's bullish trend in the stock market.

The technical trend for the stock has also improved from Mildly Bullish on January 10, 2024, generating a return of -6.67% since then. Multiple indicators such as MACD, Bollinger Band, KST, DOW, and OBV are also showing a bullish trend for the stock.

With a ROE of 29.8, Nitta Gelatin India is currently trading at a fair valuation with a price to book value of 3.1. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 74.60%, while its profits have risen by 78.4%. This indicates a low PEG ratio of 0.1 for the company.

Nitta Gelatin India has consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index. Despite being a microcap company, it is worth noting that domestic mutual funds hold only 0.18% of the company. This could signify that they are either not comfortable with the current price or have not conducted in-depth research on the company.

In conclusion, while Nitta Gelatin India has shown positive growth and a bullish trend in the stock market, it is currently rated as a 'Hold' by MarketsMOJO. Investors should carefully consider their options before making any investment decisions.