Crane Infrastructure Receives 'Sell' Rating from MarketsMOJO

Crane Infrastructure, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on October 3rd, 2023. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 1.62%. Additionally, the company has shown poor long-term growth, with net sales growing at an annual rate of 28.55% and operating profit at 1.92% over the last 5 years.
One of the main concerns for Crane Infrastructure is its ability to service its debt, as indicated by a poor EBIT to Interest (avg) ratio of 0.55. Furthermore, the stock is currently trading at a premium compared to its average historical valuations, with a Price to Book Value of 0.5 and a PEG ratio of 0.1.

On a positive note, the company has shown strong results in September 2023, with the highest Operating Cash Flow (Y) at Rs 2.22 Cr and higher Profit After Tax (HY) at Rs 0.98 Cr. The stock is also technically in a Mildly Bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

Crane Infrastructure's majority shareholders are non-institutional investors, and the company has consistently generated returns over the last 3 years. In the past year, the stock has outperformed BSE 500 and generated a return of 36.79%. However, it is important to note that this growth in profits has not been in line with the increase in stock price, resulting in an expensive valuation for the company.

In conclusion, while Crane Infrastructure may have some positive factors, the overall outlook for the company is not favorable. Investors should carefully consider the risks associated with investing in this microcap trading company before making any decisions.