Borosil downgraded to 'Sell' by MarketsMOJO due to poor management and financial results

Borosil, a smallcap company in the glass industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 14, 2024. This decision was based on several factors, including poor management efficiency with a low ROE of 7.24%. This indicates that the company is not generating enough profits per unit of shareholders' funds.
In addition, the company's financial results for September 2024 were negative, with a significant increase in interest expenses and a decrease in operating cash flow. The PBT less OI also saw a decline of -5.1%. Furthermore, with a ROCE of 12, the company's valuation is considered to be very expensive with an enterprise value to capital employed ratio of 7.9.

Moreover, the promoters of Borosil have decreased their stake in the company by -2.7% in the previous quarter, which may suggest a lack of confidence in the company's future prospects. However, the company does have a low debt to equity ratio and has shown healthy long-term growth in terms of net sales and operating profit.

From a technical standpoint, the stock is currently in a mildly bullish range and has shown a return of 22.38% in the past year. However, the PEG ratio of the company is 1.1, indicating that the stock may be trading at a fair value compared to its historical valuations. Overall, while there are some bullish factors for the stock, the recent downgrade by MarketsMOJO and the decreasing promoter confidence may be cause for concern for potential investors.