Deepak Fertilizers & Petrochemicals Corp Downgraded to 'Sell' by MarketsMOJO

Deepak Fertilizers & Petrochemicals Corp, a midcap company in the fertilizer industry, has recently been downgraded to a 'Sell' by MarketsMOJO on December 26, 2023. This decision was based on the company's negative financial results in September 2023, with a decrease in net sales by 8.37%. Additionally, the company has reported negative results for the past two consecutive quarters and has a low operating profit to interest ratio of 2.67 times.
Furthermore, the company's profits have fallen by 72.9% in the last quarter, with a return on capital employed (ROCE) of only 14.21%. This is significantly lower than the market's (BSE 500) returns of 24.32% in the last year, indicating underperformance by Deepak Fertilizers & Petrochemicals Corp.

However, there are some positive factors to consider. The company has shown healthy long-term growth with an annual rate of 37.81% in operating profit. Technically, the stock is in a mildly bullish range with bullish MACD and OBV technical factors. Additionally, with an ROCE of 15.5, the stock is currently trading at an attractive valuation with a 1.4 enterprise value to capital employed.

It is worth noting that the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 1.85% in the last year, the company's profits have fallen by 42.1%. The majority shareholders of Deepak Fertilizers & Petrochemicals Corp are the promoters, indicating their confidence in the company's long-term growth potential.

In conclusion, while Deepak Fertilizers & Petrochemicals Corp may have some positive factors, the recent downgrade to 'Sell' by MarketsMOJO and the company's negative financial results raise concerns for potential investors. It is important to carefully consider all factors before making any investment decisions.