Beekay Steel Industries Downgraded to 'Sell' by MarketsMOJO, Poor Long-Term Growth and Negative Results Raise Concerns

Beekay Steel Industries, a smallcap company in the iron and steel industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 2, 2024. This decision was based on the company's poor long-term growth, with net sales only growing at an annual rate of 1.88% and operating profit at 14.02% over the last 5 years.
In addition, the company's recent results for June 2024 have also been negative, with interest growing at a rate of 30.44% and operating profit to interest ratio at its lowest at 8.72 times. PBT less OI has also fallen at -12.0%. Despite its size, domestic mutual funds hold only 0% of the company, which could indicate their discomfort with the company's price or business.

Beekay Steel Industries has also underperformed the market in the last 1 year, with a return of only 7.24% compared to the market's return of 38.49%. However, the company does have a strong ability to service debt with a low Debt to EBITDA ratio of 0.55 times.

The technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has deteriorated since September 2, 2024, with a return of -1.84%. On the positive side, the company has an attractive valuation with a ROCE of 10.4 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, while the stock has generated a return of 7.24%, its profits have risen by 29.8%, resulting in a PEG ratio of 0.4. Overall, while Beekay Steel Industries may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO suggests caution for potential investors.