Eimco Elecon (India) Downgraded to 'Sell' by MarketsMOJO Due to Poor Management and Slow Growth

Eimco Elecon (India), a smallcap engineering company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on several factors, including poor management efficiency with a low return on equity (ROE) of 4.39%. This indicates a low profitability per unit of shareholders' funds. Additionally, the company has shown poor long-term growth with net sales growing at an annual rate of 14.81% and operating profit at 9.93% over the last 5 years.
The stock is also considered to be very expensive with a price to book value of 3.6 and a PEG ratio of 0.7. This suggests that the stock is trading at a fair value compared to its historical valuations. Despite its size, domestic mutual funds hold only 0% of the company, which could indicate that they are not comfortable with the price or the business.

On a positive note, Eimco Elecon (India) has a low debt to equity ratio and has consistently declared positive results for the last 9 consecutive quarters. Its operating cash flow has also been the highest at Rs 11.59 crore. However, the technical trend for the stock is currently sideways, indicating no clear price momentum.

Despite generating a return of 55.95% in the last year, the stock has underperformed the BSE 500 index in the last 3 annual periods. This, along with the recent downgrade by MarketsMOJO, may be a cause for concern for investors. It is important to note that this article is based on facts and does not include any external data or sources. As always, investors should conduct their own research and make informed decisions before investing in any company.