Epigral Experiences Revision in Stock Evaluation Amid Mixed Financial Indicators

Epigral, a midcap player in the chemicals industry, has recently experienced a revision in its stock evaluation by MarketsMOJO. The adjustment reflects a shift in the stock's standing, now categorized as a 'Sell.' This change comes amid a backdrop of mixed financial indicators.
Despite a commendable return of 66.80% over the past year, Epigral's valuation metrics have raised concerns. The company boasts a return on capital employed (ROCE) of 22.1, yet its enterprise value to capital employed ratio stands at 3.6, suggesting an expensive valuation. Additionally, while profits have increased by 31.4%, the stock is trading at a discount compared to its historical averages.

On a positive note, Epigral has demonstrated healthy long-term growth, with net sales expanding at an annual rate of 6.37% and operating profit soaring by 75.76%. The company has also reported positive results for the last three consecutive quarters, with net sales for the half-year reaching Rs 1,277.26 crore, reflecting a growth of 36.89%. Furthermore, the debt-equity ratio is at a low 0.64 times, indicating a solid financial position.

In light of these developments, Epigral has been added to MarketsMOJO's list, highlighting its market-beating performance despite the recent call changes.