Chandra Prabhu International Receives 'Sell' Rating from MarketsMOJO, Despite Positive Results and Promoter Confidence

Chandra Prabhu International, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on February 19, 2024. This downgrade is based on various factors, including the company's high management efficiency with a ROCE of 32.42%, its strong ability to service debt with a low Debt to EBITDA ratio of 1.09 times, and its healthy long-term growth with an annual Net Sales growth rate of 61.26%.
In addition, the company has also shown positive results in December 2023, 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, despite these positive aspects, the stock is currently in a Mildly Bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

Furthermore, the company's Fair valuation with a ROCE of 7.1 and an Enterprise value to Capital Employed ratio of 1.3 suggests that the stock is trading at a premium compared to its average historical valuations. It is also worth noting that while the stock has generated a return of 32.29% over the past year, its profits have fallen by -61.4%.

The majority shareholders of Chandra Prabhu International are the promoters, indicating their confidence in the company's future prospects. However, it is important to consider all the factors and make an informed decision before investing in the stock.