Samrat Pharmachem downgraded to 'Hold' by MarketsMOJO, shows strong financials and consistent growth

Samrat Pharmachem, a microcap pharmaceutical company, has recently been downgraded to a 'Hold' by MarketsMOJO. This decision was based on various factors, including the company's high management efficiency with a ROCE of 26.80% and its strong ability to service debt with a low Debt to EBITDA ratio of 0.67 times. Additionally, the company has shown healthy long-term growth with an annual growth rate of 20.12% in Net Sales and 33.25% in Operating Profit.
In the latest quarter, Samrat Pharmachem declared very positive results with a growth in Operating Profit of 92.12%. The company has also consistently shown positive results for the last two quarters. Its Net Sales have grown at a rate of 29.09% and its PBDIT(Q) is at its highest at Rs 2.58 cr. Furthermore, the company's Operating Profit to Net Sales(Q) is also at its highest at 3.19%.

With a ROCE of 56.1, Samrat Pharmachem has a very attractive valuation with a 2 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. However, in the past year, while the stock has generated a return of 8.90%, its profits have fallen by -54.1%.

The majority shareholders of Samrat Pharmachem are its promoters. The stock is currently in a mildly bearish range and its technical trend has deteriorated from sideways on 27-Aug-24. Multiple factors, such as RSI, MACD, and KST, are currently bearish for the stock.

In the last year, Samrat Pharmachem has underperformed the market with a return of 8.90%, while the market (BSE 500) has generated a return of 39.22%. Investors are advised to hold onto their stocks for now and monitor the company's performance in the upcoming quarters.