GMM Pfaudler downgraded to 'Sell' by MarketsMOJO due to negative financial results

GMM Pfaudler, a midcap engineering company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 11, 2024. This decision was based on the company's negative financial results for the past three quarters. The company's PBT LESS OI(Q) has fallen by -60.04%, while its PAT(Q) has decreased by -74.7%. Additionally, the company's INTEREST(9M) has grown by 25.64%.
Technically, the stock is currently in a Mildly Bearish range and has generated -8.53% returns since November 7, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bearish trend for the stock.

In the long term, GMM Pfaudler has underperformed the BSE 500 index, with a return of -24.78% in the last year. However, the company has shown high management efficiency with a ROCE of 24.35% and a strong ability to service debt with a low Debt to EBITDA ratio of 0.98 times. Its Net Sales and Operating profit have also shown healthy growth rates of 40.90% and 40.20%, respectively.

The stock is currently trading at a discount compared to its average historical valuations, with a ROCE of 15.9 and a 4 Enterprise value to Capital Employed. However, its profits have fallen by -44.5% in the past year, while the stock has generated a return of -24.78%.

GMM Pfaudler also has a high institutional holding of 30.44%, indicating that these investors have better capabilities and resources to analyze the company's fundamentals compared to retail investors. Overall, the stock has been downgraded to 'Sell' due to its below par performance in both the long term and near term.