Harsha Engineers International Downgraded to 'Sell' by MarketsMOJO, Financial Results Show Poor Growth

Harsha Engineers International, a smallcap company in the engineering industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 12, 2024. This decision was based on the company's poor long-term growth, with net sales only growing at an annual rate of 2.60% and operating profit at -0.62% over the last 5 years.
In addition, the company's recent financial results for September 2024 have also been lackluster, with a -14.0% decrease in PBT LESS OI(Q) and a -5.7% decrease in PAT(Q). This has resulted in a ROE of 9.5 and an expensive valuation with a 3.9 price to book value. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite generating a return of 24.94% over the past year, the company's profits have fallen by -10%. On a positive note, Harsha Engineers International has a strong ability to service debt with a low debt to EBITDA ratio of 1.00 times.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. However, the trend has improved since October 24, 2024, and has generated a return of 3.77% since then.

It is worth noting that the majority shareholders of Harsha Engineers International are the promoters themselves. This could potentially impact the company's decision-making and direction in the future.

Overall, with its recent downgrade to 'Sell' and lackluster financial results, investors may want to approach Harsha Engineers International with caution. However, the company's strong ability to service debt and current discount in stock price could be potential factors to consider.