Bhagwati Autocast downgraded to 'Sell' by MarketsMOJO due to negative results and underperformance in the market

Bhagwati Autocast, a microcap company in the castings/forgings industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 8, 2024. This decision was based on the company's negative results in September 2024, after two consecutive positive quarters. The company's PBT LESS OI(Q) has fallen by -106.53%, PAT(Q) has fallen by -160.0%, and NET SALES(Q) has fallen by -11.54%.
In addition, Bhagwati Autocast has underperformed the market in the last year, with negative returns of -27.32% compared to the market's 30.56% returns. However, the company has a strong ability to service debt with a low Debt to EBITDA ratio of 1.45 times. It also has a healthy long-term growth rate, with an annual growth rate of 12.28% in operating profit.

Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Mildly Bearish on October 23, 2024. The stock has generated -4.59% returns since then, and its KST and OBV technical factors are also Bullish.

With a ROCE of 13.5, Bhagwati Autocast is fairly valued with a 2.8 Enterprise value to Capital Employed. It is currently trading at a discount compared to its average historical valuations. However, over the past year, while the stock has generated negative returns, its profits have also fallen by -2.9%.

It is worth noting that the majority shareholders of Bhagwati Autocast are the promoters of the company. This may indicate a strong belief in the company's potential for growth and success in the future. However, based on the current financial performance and market trends, MarketsMOJO has downgraded the stock to a 'Sell'. Investors are advised to carefully consider these factors before making any investment decisions.