Sreechem Resins Receives Upgraded Stock Call from MarketsMOJO, Shows High Management Efficiency and Positive Quarterly Results

Sreechem Resins, a microcap company in the chemicals industry, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on May 22, 2024.
The upgrade is based on the company's high management efficiency, with a ROCE (Return on Capital Employed) of 15.87%. This is a positive sign for investors as it indicates the company's ability to generate profits from its capital investments.

In addition, Sreechem Resins has recently declared positive results for the quarter ending December 2023, after three consecutive negative quarters. The company's net sales for the quarter were at a record high of Rs 19.69 crore, while its PBDIT (Profit Before Depreciation, Interest, and Taxes) was also at its highest at Rs 2.43 crore. The operating profit to net sales ratio was also at its highest at 12.34%.

Technically, the stock is currently in a mildly bullish range and a key technical factor, MACD (Moving Average Convergence Divergence), has been bullish since May 7, 2024.

With a ROCE of 49, the company's valuation is considered attractive with an enterprise value to capital employed ratio of 2.1. The stock is also trading at a discount compared to its average historical valuations.

However, it is important to note that while the stock has generated a return of 41.36% in the past year, its profits have fallen by -102%. This could be a cause for concern for potential investors.

Majority shareholders of Sreechem Resins are non-institutional investors, indicating a lack of interest from big players in the market. However, the company has consistently generated returns over the last three years and has outperformed BSE 500 in each of the last three annual periods.

Overall, with its high management efficiency and positive quarterly results, Sreechem Resins could be a good stock to hold in one's portfolio. However, potential investors should also consider the company's falling profits and lack of interest from institutional investors before making any investment decisions.