BNR Udyog Downgraded to 'Sell' by MarketsMOJO, Despite Positive Results and Strong Shareholder Support

BNR Udyog, a microcap company in the BPO/ITeS industry, has recently been downgraded to a 'Sell' by MarketsMOJO on February 1st, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 8.96%. Additionally, the company has shown poor long-term growth, with an annual operating profit growth rate of only 18.23% over the last 5 years. Furthermore, BNR Udyog's ability to service its debt is weak, with a poor EBIT to Interest (avg) ratio of 0.30.
Despite these factors, the company has declared positive results for the last 4 consecutive quarters, with a higher PAT (HY) of Rs 4.62 crore and the highest ROCE (HY) of 56.53%. The company's DEBTORS TURNOVER RATIO (HY) is also at its highest at 17.13 times. Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, KST, and DOW being bullish.

With a ROE of 53.9, BNR Udyog has a fair valuation with a 2.1 Price to Book Value. The stock is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 99.97%, while its profits have risen by 527%. The majority shareholders of the company are the promoters.

Despite the recent downgrade, BNR Udyog has consistently generated returns over the last 3 years and has outperformed BSE 500 in each of the last 3 annual periods. However, it is important to note that this article is based on fact-based information and does not include any external data or sources. As always, investors are advised to do their own research and make informed decisions before investing in any company.