Indag Rubber downgraded to 'Sell' by MarketsMOJO, but shows potential for long-term growth

Indag Rubber, a microcap company in the rubber products industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 4, 2024. This decision was based on poor long-term growth, with the company's operating profit declining at an annual rate of -9.05% over the last 5 years.
In addition, the company's recent financial results for June 2024 have also been negative, with a significant decrease in profit after tax and net sales. This has raised concerns among domestic mutual funds, who hold a mere 0% stake in the company. This could indicate that they are either not comfortable with the company's current price or its business.

However, there are some positive factors to consider. Indag Rubber has a low debt to equity ratio and its stock is currently in a mildly bullish range. Technical indicators such as MACD, Bollinger Band, and KST also suggest a bullish trend for the stock.

Moreover, the company has a fair valuation with a price to book value of 2.8 and a return on equity of 5.3. It is also currently trading at a discount compared to its historical valuations. However, despite generating a return of 54.15% in the past year, the company's profits have declined by -15.2%.

In the long term, Indag Rubber has shown market-beating performance, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months. While the recent downgrade may raise concerns for investors, it is important to consider all factors before making any investment decisions.