Carysil downgraded to 'Sell' by MarketsMOJO due to flat results and high debt-to-equity ratio

Carysil, a smallcap company in the ceramics/marble/granite/sanitaryware industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 23, 2024. This decision was based on several factors, including flat results in June 2024, a high debt-to-equity ratio of 0.86 times, and a low return on capital employed (ROCE) of 15.48% in the first half of the year.
The stock is currently in a mildly bearish range, with technical trends showing a deterioration since September 18, 2024, resulting in a -2.77% return. The MACD and Bollinger Band technical factors also indicate a mildly bearish trend.

In terms of valuation, Carysil has a high ROCE of 17.53%, making it an expensive stock with a 4.1 enterprise value to capital employed. However, it is currently trading at a discount compared to its average historical valuations. Despite generating a return of 33.99% in the past year, the company's profits have only risen by 37.2%, resulting in a PEG ratio of 1.3.

One positive aspect of the company is its high management efficiency, with a ROCE of 17.53%. However, this may not be enough to outweigh the other factors that have led to the 'Sell' rating by MarketsMOJO.

Investors should carefully consider these factors before making any decisions regarding Carysil stock. It is important to note that this is not a recommendation, but rather a fact-based analysis of the current state of the company.