Sigachi Industries Receives 'Hold' Rating from MarketsMOJO, Shows Stable Financial Position

Sigachi Industries, a smallcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on May 30, 2024. This upgrade comes as the company has shown a low Debt to Equity ratio of 0.02 times, indicating a stable financial position.
The technical trend for Sigachi Industries has been sideways, with no clear price momentum. This trend has worsened since May 30, 2024, resulting in a -3.41% return. However, the stock has outperformed the market (BSE 500) with a return of 169.38% in the last year.

In the latest quarter, Sigachi Industries reported flat results with a decrease of -29.9% in PBT LESS OI(Q) at Rs 9.97 crore. The company's DEBTORS TURNOVER RATIO(HY) is at its lowest at 2.66 times, and OPERATING PROFIT TO INTEREST (Q) is also at its lowest at 5.69 times.

With a ROCE of 13.3, Sigachi Industries has a very expensive valuation with an Enterprise value to Capital Employed ratio of 4.3. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has seen a significant return, its profits have only increased by 31.3%, resulting in a PEG ratio of 1.5.

It is worth noting that despite being a smallcap company, domestic mutual funds hold only 0% of Sigachi Industries. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.