Bilcare downgraded to 'Sell' by MarketsMOJO

Bilcare, a microcap company in the packaging industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 28, 2023. This decision was based on the company's high debt and weak long-term fundamental strength. Over the past 5 years, Bilcare's net sales have declined at an annual rate of -21.91%, indicating poor long-term growth. Additionally, the company's debt to equity ratio is at a high of 5.79 times, and it has reported losses, resulting in a negative return on equity.
In the latest quarter, Bilcare's operating cash flow was at its lowest at Rs -6.99 crore, and its profits have fallen by -25.89%. On the other hand, its interest expenses have increased by 39.37%. With a ROE of -15.4, the stock is currently trading at an expensive valuation with a price to book value of 0.4. However, it is currently trading at a discount compared to its average historical valuations.

Despite the negative factors, there are some bullish indicators for the stock. It is currently in a mildly bullish range and has shown positive trends in technical indicators such as MACD, Bollinger Band, and KST. The majority of the company's shareholders are non-institutional investors.

In terms of market performance, Bilcare has outperformed the market (BSE 500) with a return of 104.62% in the last year, compared to the market's return of 16.72%. However, it is important to note that the company's profits have declined by -84.3% during this period. Overall, with its current financial situation and market performance, MarketsMOJO has downgraded its stock call on Bilcare to 'Sell'.