Dollar Industries Receives 'Sell' Rating from MarketsMOJO Due to Poor Growth and Financial Performance

Dollar Industries, a smallcap textile company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of -3.74% over the last 5 years. In addition, the company's recent financial results for September 2024 show a low operating cash flow of Rs -25.57 crore and a high debt-to-equity ratio of 0.46 times.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since November 13, 2024, resulting in a -3.16% return. The MACD and Bollinger Band technical factors also indicate a Bearish trend.

Despite being a smallcap company, Dollar Industries has not gained much interest from domestic mutual funds, with only 0% of the company's shares held by them. This could be due to their lack of comfort with the company's current price or business.

In the past year, Dollar Industries has underperformed the market, with a return of only 13.89% compared to the BSE 500's return of 26.05%. However, the company does have some positive factors, such as a high ROCE of 16.06% and a low debt-to-EBITDA ratio of 1.40 times, indicating a strong ability to service debt.

Furthermore, with a ROCE of 12.3, Dollar Industries is currently trading at a discount compared to its historical valuations. In the past year, while the stock has generated a return of 13.89%, its profits have risen by 94.6%, resulting in a low PEG ratio of 0.3. Overall, while the company may have some positive aspects, the recent downgrade by MarketsMOJO suggests that investors should approach with caution.