Cupid's Stock Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth and High Valuation

Cupid, a smallcap company in the rubber products industry, has recently received a 'Sell' rating from MarketsMOJO on September 4th, 2024. This downgrade is due to poor long-term growth, with operating profit only increasing by an annual rate of 9.71% over the last 5 years.
The stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on September 4th, 2024. Additionally, the key technical factor, KST, has been Bearish since the same date.

One of the main reasons for the 'Sell' rating is the company's high valuation. With a ROE of 27.5 and a price to book value of 13.8, the stock is trading at a premium compared to its historical valuations. Despite a return of 362.69% in the last year, the company's profits have only risen by 57.9%, resulting in a PEG ratio of 0.9.

On a positive note, Cupid has a low debt to equity ratio and has shown strong results in June 2024. The company's net sales have grown by 39.40% to Rs 106.92 crore, while its PAT has increased to Rs 31.98 crore.

Overall, Cupid's stock has outperformed the market (BSE 500) with a return of 362.69% in the last year. However, considering the company's poor long-term growth and high valuation, MarketsMOJO has downgraded its stock to 'Sell'. Investors should carefully consider these factors before making any investment decisions.