Bambino Agro Industries downgraded to 'Sell' by MarketsMOJO due to high debt and poor growth

Bambino Agro Industries ., a microcap FMCG company, has recently been downgraded to a 'Sell' by MarketsMOJO on April 9, 2024. This decision was based on several factors, including the company's high debt to EBITDA ratio of 3.59 times, indicating a low ability to service debt. Additionally, the company has shown poor long-term growth with only a 7.68% increase in net sales and a 9.87% increase in operating profit over the last 5 years.
In December 2023, Bambino Agro Industries . reported a decline in profits, with a PAT(Q) of Rs 1.21 crore, a decrease of 31.6%. This has also contributed to the stock's technical trend moving from mildly bullish to mildly bearish. The MACD and KST technical factors are also currently bearish.

Furthermore, the stock has underperformed the market in the last year, with a return of only 8.36%, compared to the BSE 500 index's return of 39.93%. However, the company does have a fair valuation with a ROCE of 11.4 and an enterprise value to capital employed ratio of 2.1. It is also currently trading at a discount compared to its average historical valuations.

It is worth noting that the majority shareholders of Bambino Agro Industries . are the promoters of the company. While the stock has generated a return of 8.36% in the last year, its profits have only increased by 4%, resulting in a PEG ratio of 9.4. Overall, MarketsMOJO's downgrade to 'Sell' for Bambino Agro Industries . is based on the company's financial performance and technical trends, and investors should carefully consider these factors before making any investment decisions.