Ishita Drugs & Industries Downgraded to 'Sell' by MarketsMOJO on Weak Fundamentals

Ishita Drugs & Industries, a microcap pharmaceutical company, has recently been downgraded to a 'Sell' by MarketsMOJO on August 21, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 7.92%, poor long-term growth in net sales and operating profit, and a weak ability to service its debt with a poor EBIT to Interest ratio.
In addition, the company's results for June 2024 were flat and it has underperformed the market in the last year, generating a return of only 24.84% compared to the market's 38.03%. However, there are some positive technical indicators for the stock, as it is currently in a bullish range and has shown improvement since August 16, 2024, generating a return of 9.83%.

Furthermore, the stock is trading at a fair value with a price to book value of 2.4 and has a fair valuation compared to its historical averages. Despite a 20% increase in profits over the past year, the PEG ratio of the company is 0.7, indicating a fair valuation.

It is worth noting that the majority of shareholders in Ishita Drugs & Industries are non-institutional investors. Overall, while the stock may have some positive technical indicators, the fundamental strength and growth potential of the company may not be strong enough to warrant a 'Sell' rating. Investors should carefully consider these factors before making any investment decisions.