Integra Engineering India Downgraded to 'Sell' by MarketsMOJO, Stock May Be Overvalued.

Integra Engineering India, a microcap company in the textile machinery industry, has recently been downgraded to a 'Sell' by MarketsMOJO on March 13, 2024. This decision was based on the company's flat results in December 2023, with a decline of -35.88% in its PAT (HY) at Rs 7.65 crore. Additionally, the company's ROCE of 28.6 indicates a very expensive valuation, with an enterprise value to capital employed ratio of 8.8.
Despite the stock's 77.66% return in the past year, its profits have only increased by 6.3%, resulting in a high PEG ratio of 6.8. This suggests that the stock may be overvalued compared to its historical average valuations. Furthermore, domestic mutual funds hold only 0.53% of the company, indicating a lack of confidence in the company's current price or business.

On a positive note, Integra Engineering India has a strong ability to service debt, with a low debt to EBITDA ratio of 1.25 times. However, the technical trend for the stock is currently sideways, with no clear price momentum. The trend has also deteriorated from mildly bullish on March 13, 2024, resulting in a -4.33% return since then.

Despite these factors, the company has consistently generated returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, with the recent downgrade and other concerning factors, it may be wise for investors to approach this stock with caution.