India Nippon Electricals Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth and Bearish Trend.

India Nippon Electricals, a smallcap auto ancillary company, has recently been downgraded to 'Sell' by MarketsMOJO. This decision was based on the company's poor long-term growth, with an annual operating profit growth rate of -13.74% over the last 5 years. The stock is also currently in a bearish range, with technical indicators such as RSI, MACD, and KST all pointing towards a downward trend.
One of the concerning factors for this company is that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that these funds are not comfortable with the company's current price or business.

However, there are some positive aspects to consider. India Nippon Electricals has a low debt to equity ratio and has declared positive results for the last 3 consecutive quarters. Its ROCE (HY) is also the highest at 14.31%, with net sales (Q) at Rs 209.85 crore and PBDIT (Q) at Rs 23.61 crore.

The company also has a fair valuation with a 2.4 price to book value and a ROE of 10.8. However, the stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 46.31%, while its profits have risen by 31.6%. The PEG ratio of the company is 0.7, indicating a slightly undervalued stock.

Despite the recent downgrade, India Nippon Electricals has consistently generated returns over the last 3 years and has outperformed BSE 500 in each of the last 3 annual periods. However, investors should carefully consider all factors before making any investment decisions.