Concord Drugs Receives 'Sell' Rating from MarketsMOJO

Concord Drugs, a microcap pharmaceutical company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a -4.38% CAGR growth in net sales 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 1.55.
In the latest quarter, Concord Drugs reported flat results with net sales at Rs 7.53 crore, the lowest in the past year. This further adds to the company's weak performance.

On a technical level, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. However, with a ROCE of 7.6, the stock is considered to have a very attractive valuation with a 1.4 enterprise value to capital employed.

Despite this, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 72.38%, its profits have only risen by 72%, resulting in a PEG ratio of 0.5.

In the long term, Concord Drugs has shown market-beating performance, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months. However, with the recent downgrade from MarketsMOJO, investors may want to carefully consider their investment in this microcap pharmaceutical company.