Amrapali Industries Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and High Debt

Amrapali Industries, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on August 8th, 2024. This downgrade is based on the company's weak long-term fundamental strength, as evidenced by its operating losses and poor growth in operating profit over the last 5 years. Additionally, the company has a high debt to EBITDA ratio, indicating a low ability to service debt.
In the most recent quarter, Amrapali Industries reported flat results with its PBDIT(Q) at a low of Rs -2.51 crore and its operating profit to net sales (Q) at -0.05%. Its PBT less OI(Q) was also at a low of Rs -3.49 crore. These factors contribute to the 'Sell' rating given by MarketsMOJO.

On a technical level, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish. However, with a ROCE of 1.3, the stock is considered to have an attractive valuation with a 1.4 enterprise value to capital employed. It is also currently trading at a discount compared to its average historical valuations.

Despite generating a return of 41.61% over the past year, Amrapali Industries has seen a decline in profits by -6%. The majority shareholders of the company are its promoters. This news article serves as an informative update for investors considering Amrapali Industries as a potential investment option.