Ircon International Downgraded to 'Sell' by MarketsMOJO After Negative Results and Decrease in Institutional Investors

Ircon International, a largecap engineering company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 18, 2024. This decision was based on the company's negative results in June 2024, after 5 consecutive quarters of positive performance. The company's interest expenses have also grown at a rate of 20.09%, while its operating profit to interest ratio is at its lowest at 5.20 times. Additionally, the debt-to-equity ratio is at its highest at 0.44 times.
From a technical standpoint, the stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on October 16, 2024. Multiple indicators such as MACD, Bollinger Band, and KST suggest a bearish outlook for the stock.

Institutional investors have also decreased their stake in the company by -1.49% over the previous quarter, collectively holding only 5.84% of the company. This decrease in participation by institutional investors could be a cause for concern, as they have better resources and capabilities to analyze a company's fundamentals compared to retail investors.

On a positive note, Ircon International has a low debt-to-equity ratio (avg) of 0 times and a fair valuation with a price-to-book value of 3.6. 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 41.73%, while its profits have only risen by 19.6%. This results in a PEG ratio of 1.1, indicating that the stock may be overvalued.

In conclusion, based on the recent downgrade by MarketsMOJO and various other factors, it may be wise for investors to consider selling their shares in Ircon International.