CWD Receives 'Sell' Rating from MarketsMOJO, Stock Valuation Considered Expensive

CWD, a microcap IT hardware company, has recently received a 'Sell' rating from MarketsMOJO on August 28, 2024. This downgrade is based on the company's flat results in September 2023 and its lowest operating cash flow of Rs -3.19 crore. With a ROCE of 10.7, CWD's valuation is considered to be very expensive with an enterprise value to capital employed ratio of 14.6.
In addition, the stock is currently trading at a premium compared to its average historical valuations. Despite generating a return of 30.13% in the past year, CWD's profits have declined by -48%.

On a positive note, the company has shown healthy long-term growth with an annual net sales growth rate of 73.40%. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The trend has also deteriorated from mildly bullish on August 28, 2024, and has generated a -2.1% return since then.

It is worth noting that the majority shareholders of CWD are its promoters. As a microcap company in the IT hardware industry, CWD's stock call has been downgraded to 'Sell' by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.