Cantabil Retail India Downgraded to 'Sell' by MarketsMOJO on March 6, 2024

Cantabil Retail India, a smallcap company in the textile industry, has recently been downgraded to a 'Sell' by MarketsMOJO on March 6, 2024. This decision was based on several factors, including flat results in December 2023, with a decrease in PBT and PAT by 17.02% and 10.6% respectively. Additionally, the company's DEBTORS TURNOVER RATIO(HY) has reached its lowest point at 40.28 times.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since March 6, 2024, resulting in a -2.39% return. The Bollinger Band, a key technical factor, has also been Bearish since the same date.

Furthermore, Cantabil Retail India has a high ROCE of 19.1, indicating an expensive valuation with a 3.8 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 14.45%, while its profits have only increased by 3.9%. This results in a PEG ratio of 7.6 for the company.

In terms of market performance, Cantabil Retail India has underperformed in the last year, with a return of 14.45%, significantly lower than the market (BSE 500) return of 36.15%.

On a positive note, the company has shown healthy long-term growth, with an annual rate of 57.33% in Operating profit. However, this does not outweigh the current negative factors affecting the stock.

In conclusion, based on the current financial and technical indicators, it is advisable to sell Cantabil Retail India stock. Investors should carefully consider these factors before making any investment decisions.