Hexa Tradex Receives 'Sell' Rating from MarketsMOJO, Indicating Potential Decline in Performance

Hexa Tradex, a smallcap trading company, has recently received a 'Sell' rating from MarketsMOJO on October 21, 2024. This downgrade is based on several factors that indicate a potential decline in the company's performance.
One of the main reasons for the 'Sell' rating is the company's high Debt to EBITDA ratio of -1.00 times, which suggests a low ability to service debt. Additionally, the company's Return on Equity (avg) of 0.10% indicates low profitability per unit of shareholders' funds.

Furthermore, Hexa Tradex has declared negative results in June 2024 after two consecutive positive quarters. Its net sales for the past 9 months have decreased by -57.37%, while its profits have fallen by -51.31%. This decline is also reflected in the company's PBT LESS OI(Q) which has fallen by -115.2%.

The stock is currently trading at a discount compared to its average historical valuations, with a price to book value of 0.4. Despite generating a return of 91.29% in the past year, the company's profits have fallen by -34.5%. This may be a cause for concern for investors.

Another factor to consider is that domestic mutual funds hold only 0.1% of the company, which may indicate that they are not comfortable with the company's current price or business.

However, there are some positive aspects to consider as well. Hexa Tradex has shown healthy long-term growth with net sales growing at an annual rate of 153.31% and operating profit at 67.24%. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, KST, DOW, and OBV indicating a bullish trend.

In the long term, Hexa Tradex has outperformed the BSE 500 index, generating 91.29% returns in the past year and outperforming the index in the last 3 years, 1 year, and 3 months. However, with the recent downgrade from MarketsMOJO, investors may want to carefully consider their investment in Hexa Tradex.