Barak Valley Cements Receives 'Sell' Rating from MarketsMOJO: A Closer Look.
Barak Valley Cements, a microcap company in the cement industry, has received a 'Sell' rating from MarketsMojo due to weak long-term fundamentals, poor growth in net sales and operating profit, and a high debt to EBITDA ratio. Despite positive technical indicators, its ROCE and PEG ratio suggest caution. However, the company has consistently generated returns and has an attractive valuation.
Barak Valley Cements, a microcap company in the cement industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on several factors, including weak long-term fundamental strength, poor growth in net sales and operating profit over the last 5 years, and a high debt to EBITDA ratio.In the most recent quarter, the company's profits have decreased by 55.95% and net sales have fallen by 8.5%. However, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish.
Despite these positive technical indicators, the company's ROCE of 7.33% and PEG ratio of 12.5 suggest that it may not be a good investment option. Additionally, the majority shareholders of Barak Valley Cements are its promoters.
On a positive note, the company has consistently generated returns over the last 3 years and has outperformed the BSE 500 index in each of the last 3 annual periods. It also has an attractive valuation with an enterprise value to capital employed ratio of 1.1 and is currently trading at a discount compared to its historical valuations.
Overall, while Barak Valley Cements may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO suggests that investors should approach this microcap company with caution.
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