Indian Metals & Ferro Alloys Downgraded to 'Sell' by MarketsMOJO: What Investors Need to Know

Indian Metals & Ferro Alloys, a smallcap company in the ferro and silica manganese industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 30, 2024. This decision was based on several factors, including poor long-term growth with a net sales increase of only 10.43% over the last 5 years. Additionally, the stock is currently in a Mildly Bearish range and the technical trend has deteriorated since October 30, 2024, resulting in a 3.83% return.
One key technical factor that contributed to the downgrade is the Bearish KST since October 30, 2024. Another concerning aspect is that despite the company's size, domestic mutual funds hold only 1.83% of the company. This could indicate that they are not comfortable with the price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

However, there are some positive factors to consider, such as the company's positive results in June 2024, with the highest operating cash flow and operating profit to interest ratio. The company also has an attractive valuation with a 1.7 price to book value and is currently trading at a discount compared to its historical valuations. Additionally, the company has a high dividend yield of 4.4 and has shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

In conclusion, while Indian Metals & Ferro Alloys may have some concerning factors, it also has positive aspects to consider. Investors should carefully evaluate all factors before making any decisions regarding this smallcap company in the ferro and silica manganese industry.