Inox Green Energy Services downgraded to 'Sell' by MarketsMOJO due to poor management and expensive valuation

Inox Green Energy Services, a midcap company in the renewable energy industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 8, 2024. This decision was based on the company's poor management efficiency, with a low Return on Equity (ROE) of 1.00%. This indicates a low profitability per unit of shareholders' funds.
The company's financial results for September 2024 have also been flat, with its Inventory Turnover Ratio and Debtors Turnover Ratio at their lowest levels. Additionally, the Profit After Tax (PAT) has fallen by -5.9% to Rs 6.40 crore. With a ROE of 1.6, the company's valuation is considered to be very expensive, with a Price to Book Value of 3.

On the positive side, Inox Green Energy Services has shown healthy long-term growth, with an annual growth rate of 67.45% in operating profit. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The Bollinger Band, a key technical factor, has also been sideways since November 8, 2024.

The majority shareholders of the company are the promoters, and the stock has outperformed the market (BSE 500) with a return of 135.99% in the last year. However, this is significantly higher than the market's returns of 30.56%. Based on these factors, MarketsMOJO has downgraded the stock to 'Sell'. Investors should carefully consider these factors before making any investment decisions.