Dishman Carbogen Amcis Downgraded to 'Sell' by MarketsMOJO

Dishman Carbogen Amcis, a smallcap pharmaceutical company, has recently been downgraded to a 'Sell' by MarketsMOJO on July 10, 2023. This decision was based on the company's weak long-term fundamental strength, with a -26.12% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.86.
In September 2023, the company declared negative results after 1 consecutive positive quarters, with the lowest operating cash flow of Rs 220.34 Cr and a significant decrease in PBT and PAT. These factors have contributed to the downgrade of the stock.

On a positive note, the stock is currently in a mildly bullish range and has multiple bullish indicators such as MACD, KST, and OBV. It also has a very attractive valuation with a ROCE of 1 and a low enterprise value to capital employed ratio of 0.6. However, the stock is currently trading at a discount compared to its average historical valuations.

It is worth noting that while the stock has generated a return of 63.92% in the last year, its profits have only increased by 132.2%, resulting in a high PEG ratio of 18.8. The majority shareholders of the company are the promoters, and the stock has outperformed the market (BSE 500) with a return of 63.92% compared to the market's 16.72% return in the last year.

Overall, the downgrade of Dishman Carbogen Amcis to a 'Sell' by MarketsMOJO highlights the company's weak financial performance and concerns about its ability to service its debt. Investors should carefully consider these factors before making any investment decisions.