Ducon Infratechnologies Receives 'Sell' Rating from MarketsMOJO Due to Weak Performance and High Debt

Ducon Infratechnologies, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on July 22, 2024. This downgrade is based on several factors, including weak long-term fundamental strength with an average Return on Capital Employed (ROCE) of 7.26%, poor long-term growth in net sales and operating profit, and a high debt to EBITDA ratio of 4.75 times.
In addition, the stock is currently in a Mildly Bearish range and has seen a decline in technical trend since July 19, 2024, resulting in -3.47% returns. The Bollinger Band, a key technical factor, has also been Bearish since July 19, 2024.

Furthermore, Ducon Infratechnologies has underperformed the BSE 500 in the last 3 years, 1 year, and 3 months, with a return of -0.79% in the last year. However, the company did show positive results in March 2024, with its ROCE (HY) at 9.28%, PBDIT (Q) at Rs 7.48 crore, and operating profit to net sales (Q) at 6.98%.

Despite these positive results, the stock is still considered to have an attractive valuation with a ROCE of 9.8 and a 1.4 Enterprise value to Capital Employed. It is also currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of -0.79%, its profits have increased by 86.1%, resulting in a low PEG ratio of 0.3.

It is worth noting that the majority shareholders of Ducon Infratechnologies are the promoters of the company. Overall, the recent downgrade to 'Sell' by MarketsMOJO highlights the company's weak long-term performance and high debt, making it a less favorable investment option in the trading industry.