Carysil Downgraded to 'Sell' by MarketsMOJO, Technical Trend and Institutional Investor Participation Raise Concerns

Carysil, a smallcap company in the ceramics/marble/granite/sanitaryware industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 13, 2024. The technical trend for the stock has deteriorated from Mildly Bearish to Bearish, resulting in a -5.49% return since the downgrade. Multiple indicators such as MACD, Bollinger Band, and KST also suggest a bearish outlook for the stock.
Institutional investors have also decreased their stake in the company by -0.69% over the previous quarter, holding only 12.3% of the company. This decrease in participation by institutional investors could be a cause for concern for retail investors.

The stock has also underperformed the BSE 500 index in the last 1 year, 3 years, and 3 months, generating a return of -14.64%. However, the company has shown high management efficiency with a ROCE of 17.53%. In the latest quarter, Carysil reported positive results with the highest net sales of Rs 207.07 crore and cash and cash equivalents of Rs 102.78 crore. The company also has a low debt-to-equity ratio of 0.53 times.

With a ROCE of 16.4, the stock is currently trading at a fair valuation with a 3.5 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations. Despite the negative return in the past year, the company's profits have increased by 23.3%, resulting in a PEG ratio of 2.1.

Overall, while Carysil may have some positive factors such as high management efficiency and positive results in the latest quarter, the technical trend and decrease in institutional investor participation suggest a bearish outlook for the stock. Investors may want to consider these factors before making any investment decisions.