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 'Sell' by MarketsMOJO. This decision was based on several factors, including the company's high debt to EBITDA ratio of 2.73 times, which indicates a low ability to service debt. Additionally, the company has declared negative results for the last four consecutive quarters, with a significant increase in interest expenses and a decrease in profits. Institutional investors have also decreased their stake in the company, which could be a cause for concern as they have better resources to analyze a company's fundamentals. Furthermore, the stock has underperformed the market in the last year, generating a return of only 21.99% compared to the market's return of 37.64%. However, there are some positive aspects to consider. The company has a high management efficiency with a ROCE of 15.22% and a healthy long-term growth rate of 26.72% in operating profit. Additionally, the stock is currently trading at an attractive valuation with a ROCE of 10.7 and a 1.4 enterprise value to capital employed. The technical trend for the stock is currently sideways, indicating no clear price momentum. It has also generated a return of 1.31% since the downgrade on July 1, 2024. Overall, while Deepak Fertilizers & Petrochemicals Corp may have some positive aspects, the recent downgrade by MarketsMOJO suggests caution for potential investors.