Zodiac Energy's Strong Performance and Growth Potential Garner 'Hold' Rating from MarketsMOJO

Zodiac Energy, a smallcap company in the engineering and industrial equipment industry, has recently been downgraded to a 'Hold' by MarketsMOJO on July 1, 2024. This decision was based on the company's healthy long-term growth, with an annual operating profit growth rate of 49.63%. Additionally, the company has declared outstanding results for the last four consecutive quarters, with a net profit growth of 253.42%.
The company's performance in the first quarter of 2024 has also been impressive, with a growth of 224.45% in PBT LESS OI(Q) and 71.71% in NET SALES(Q). The PBDIT(Q) has also reached its highest at Rs 8.82 cr. Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, KST, and DOW indicating a bullish trend.

Zodiac Energy has also outperformed the market, generating a return of 479.36% in the last year, compared to the market (BSE 500) return of 37.64%. However, with a ROCE of 8.8, the stock has a very expensive valuation, with an enterprise value to capital employed ratio of 15.3. Despite this, the stock is currently trading at a discount compared to its average historical valuations.

It is worth noting that despite its impressive performance, domestic mutual funds hold only 0% of the company. This may indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company. Overall, while Zodiac Energy shows promising growth potential, investors may want to hold off on buying the stock until further research is conducted.