Elegant Marbles and Grani Industries downgraded to 'Sell' by MarketsMOJO

Elegant Marbles and Grani Industries, a microcap trading company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 2.41%, poor long-term growth with an annual growth rate of 11.88% in Net Sales over the last 5 years, and a weak ability to service its debt with a poor EBIT to Interest (avg) ratio of 0.76.
Despite declaring positive results for the last 12 consecutive quarters and a growth of 47.02% in PAT (HY), the stock is technically in a mildly bullish range. However, there are multiple bullish factors for the stock, such as MACD, Bollinger Band, and KST. With a ROE of 5.6, the stock has a fair valuation with a price to book value of 0.9. However, it is currently trading at a premium compared to its average historical valuations.

In the past year, the stock has generated a return of 135.99%, outperforming the market (BSE 500) returns of 39.87%. Despite this market-beating performance, the company's profits have only risen by 87.2%, resulting in a low PEG ratio of 0.2. Based on these factors, MarketsMOJO has downgraded Elegant Marbles and Grani Industries to a 'Sell' and advises investors to exercise caution while considering this stock.