CL Educate Receives 'Sell' Rating, Concerns Over Long-Term Fundamentals and Debt Servicing

CL Educate, a microcap company in the educational institutions industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a -9.13% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.69.
In the latest quarter, CL Educate's profits have fallen by -59.0%, with non-operating income accounting for 85.94% of the profit before tax. Despite its size, domestic mutual funds hold only 0% of the company, which could indicate that they are not comfortable with the current price or the business itself.

On a positive note, the stock is currently in a mildly bullish range and has shown improvement in its technical trend since December 2023, generating 10.44% returns. The MACD and KST technical factors are also bullish. With a ROE of 8.2, the stock is considered to have an attractive valuation with a 2 price to book value. It is also trading at a fair value compared to its historical valuations.

Over the past year, CL Educate has generated a return of 71.67%, while its profits have risen by 22.8%. This gives the company a PEG ratio of 1.2, indicating a consistent performance over the last 3 years. In fact, the stock has outperformed the BSE 500 in each of the last 3 annual periods.

While the recent downgrade may raise concerns for investors, it is important to consider all factors before making any investment decisions. With a mix of positive and negative indicators, it is advisable to do thorough research and consult with a financial advisor before investing in CL Educate.