B&A . Downgraded to 'Sell' by MarketsMOJO, Despite Strong Market Performance

B&A ., a microcap company in the tea/coffee industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 15, 2024. This decision was based on the company's poor long-term growth, with an annual rate of -1.92% in operating profit over the last 5 years.
In addition, the company has recently declared negative results for the March 2024 quarter, with a significant decrease in PAT (profit after tax) and NET SALES. The PBDIT (profit before depreciation, interest, and taxes) has also seen a sharp decline.

However, there are some positive factors to consider. B&A . has a strong ability to service debt, with a low Debt to EBITDA ratio of 1.35 times. The stock is also technically in a Mildly Bullish range, with multiple factors such as MACD, KST, and OBV showing a bullish trend.

Furthermore, the company has a fair valuation with a ROCE (return on capital employed) of 8.3 and an Enterprise value to Capital Employed ratio of 1.4. The stock is currently trading at a discount compared to its average historical valuations.

Despite the recent downgrade, B&A . has shown market-beating performance with a return of 159.40% in the last year, significantly higher than the market (BSE 500) returns of 37.76%. However, it is important to note that while the stock has seen a significant increase in returns, its profits have only risen by 23.6%, resulting in a PEG ratio of 0.8.

Investors should carefully consider these factors before making any decisions regarding B&A . stock. While the company has shown strong market performance, its financials and recent downgrade should also be taken into account.