Alfa Ica (India) Downgraded to 'Sell' by MarketsMOJO, Despite Positive Technical Factors

Alfa Ica (India), a microcap company in the wood and wood products industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 27, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Capital Employed (ROCE) of 8.72%, poor long-term growth with only a 5.38% annual growth in Net Sales and 11.99% in Operating profit over the last 5 years, and a high Debt to EBITDA ratio of 4.03 times, indicating a low ability to service debt.
In addition, the company's results for September 2024 were flat and its DEBTORS TURNOVER RATIO(HY) was at its lowest at 5.47 times. However, there are some positive technical factors for the stock, as it is currently in a Mildly Bullish range and its MACD and KST technical factors are also Bullish.

Despite its weak fundamentals, Alfa Ica (India) has a Very Attractive valuation with a ROCE of 8.5 and an Enterprise value to Capital Employed ratio of 1.3. The stock is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 49.44%, while its profits have risen by 24.8%. The PEG ratio of the company is also at a favorable level of 0.8.

The majority shareholders of Alfa Ica (India) are the promoters, indicating their confidence in the company's performance. In fact, the stock has a track record of market-beating performance in both the long term and near term. It has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, making it a potential investment opportunity for those looking for a microcap stock in the wood and wood products industry.