Chandra Prabhu International Downgraded to 'Sell' by MarketsMOJO Due to Underperformance in Market

Chandra Prabhu International, a microcap trading company, has recently been downgraded to a 'Sell' by MarketsMOJO on May 14, 2024. This decision was based on the company's underperformance in the market over the past year, with a return of only 14.67% compared to the market's 32.70% return.
However, the company has shown high management efficiency with a ROCE of 32.42% and a strong ability to service debt with a low Debt to EBITDA ratio of 1.09 times. Additionally, Chandra Prabhu International has also demonstrated healthy long-term growth with an annual net sales growth rate of 61.26%.

In December 2023, the company reported positive results with a 53.71% growth in net sales, a higher PAT of Rs 4.32 crore, and the highest cash and cash equivalents of Rs 28.77 crore. However, the technical trend for the stock is currently sideways, indicating no clear price momentum.

Despite an attractive valuation with a ROCE of 7.1 and an enterprise value to capital employed ratio of 1.1, the stock is trading at a discount compared to its average historical valuations. Furthermore, while the stock has generated a return of 14.67% in the past year, its profits have declined by -61.4%.

It is worth noting that the majority shareholders of Chandra Prabhu International are the promoters of the company. This information, along with the fact-based analysis provided by MarketsMOJO, can help investors make informed decisions about their investments in the company.