Hisar Metal Industries Downgraded to 'Sell'

Hisar Metal Industries, a microcap company in the iron and steel industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2023-09-05. This decision was based on the company's high debt and weak long-term fundamental strength. Over the last 5 years, the company has only seen a modest growth in net sales and operating profit, with a debt to equity ratio of 1.76 times.
In addition, the company has declared negative results for the past 3 consecutive quarters, with a significant decline in profits. The PAT (HY) has seen a decrease of 48.27%, while PBT LESS OI (Q) has fallen by 44.18%. The ROCE (HY) is also at its lowest at 12.75%.

Despite these factors, the stock is currently in a bullish range and has shown a 5.97% return since 28-Nov-23. Technical indicators such as MACD, Bollinger Band, KST, and OBV are also showing bullish signals for the stock.

However, with a ROCE of 12.6, the stock is considered to have an attractive valuation with a 1.4 Enterprise value to Capital Employed. It is also trading at a discount compared to its historical valuations. Although the stock has generated a return of 47.45% in the past year, its profits have declined by 51.2%.

The majority shareholders of Hisar Metal Industries are the promoters, and the company has consistently outperformed BSE 500 in the last 3 annual periods. While the stock may have potential for growth, it is currently facing challenges that have led to its downgrade to a 'Sell'. Investors should carefully consider these factors before making any investment decisions.