Sukhjit Starch & Chemicals Receives 'Buy' Rating from MarketsMOJO, Shows Strong Growth Potential

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, has recently caught the attention of investors as MarketsMOJO upgraded its stock call to 'Buy' on August 19, 2024. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 39.08%.
In addition, the company has shown positive results in June 2024, with its operating profit to interest ratio at a high of 4.52 times and a dividend payout ratio of 25.01%. It also has a strong cash position, with cash and cash equivalents of Rs 15.56 crore.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its technical trend from mildly bullish on August 19, 2024. The MACD and KST technical factors also indicate a bullish trend.

Moreover, Sukhjit Starch & Chemicals has an attractive valuation with a ROCE of 12.6 and an enterprise value to capital employed ratio of 1.3. It is currently trading at a discount compared to its average historical valuations. Despite generating a return of 21.13% in the past year, the company's profits have fallen by -3.2%.

However, there are some risks associated with investing in this company. Despite its potential, domestic mutual funds hold only 0% of the company, which may indicate their discomfort with the stock's price or business. Additionally, Sukhjit Starch & Chemicals has underperformed the market in the last year, with a return of 21.13% compared to the market's return of 37.46%.

In conclusion, Sukhjit Starch & Chemicals shows promising growth potential and has received a 'Buy' rating from MarketsMOJO. However, investors should also consider the risks associated with the stock before making any investment decisions.