Eveready Industries India Downgraded to 'Sell' by MarketsMOJO on July 1, 2024.

Eveready Industries India, a smallcap company in the battery industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 1, 2024. This decision was based on several factors, including the company's high debt to EBITDA ratio of 2.57 times, indicating a low ability to service debt. Additionally, the company has shown poor long-term growth with a decline in net sales and operating profit over the last 5 years.
Technically, the stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Sideways on July 1, 2024. The MACD and KST technical factors also suggest a Mildly Bearish trend. In terms of performance, the stock has underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of -0.13% in the last year.

However, there are some positive aspects to consider. The company has a high management efficiency with a ROCE of 17.03%. It has also declared positive results for the last 4 consecutive quarters, with PBT LESS OI(Q) growing at 134.58% and PAT(Q) growing at 136.8%. The company's ROCE(HY) is also at its highest at 16.29%.

In terms of valuation, Eveready Industries India has an attractive ROCE of 16.1 and a 4.2 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. Additionally, while the stock has generated a negative return in the past year, its profits have increased by 231.3%, resulting in a low PEG ratio of 0.2.

Another positive factor is the increasing participation of institutional investors, who have increased their stake in the company by 3.25% in the previous quarter and collectively hold 6.26% of the company. This suggests that these investors have better capabilities and resources to analyze the fundamentals of the company compared to retail investors.

In conclusion, while Eveready Industries India may have some positive aspects, the overall outlook for the company is currently negative, leading to the 'Sell' rating by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.