Jagran Prakashan downgraded to 'Sell' by MarketsMOJO due to poor long-term growth and technical factors.

Jagran Prakashan, a smallcap company in the printing and publishing industry, has recently been downgraded to a 'Sell' by MarketsMOJO on May 21, 2024. This decision was based on several factors, including poor long-term growth with a -4.06% annual growth rate in net sales and a -19.93% decline in operating profit over the last 5 years.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend from Mildly Bullish on May 18, 2024. The MACD and KST technical factors also indicate a Bearish trend. Additionally, 99.97% of the company's promoter shares are pledged, which can put downward pressure on the stock prices in falling markets.

On a positive note, Jagran Prakashan has a low Debt to Equity ratio (avg) of 0 times. The company also declared positive results in December 2023 after 4 consecutive negative quarters. Its operating profit to interest ratio is the highest at 16.73 times, and its debt-equity ratio (HY) is the lowest at 0.15 times. The company's net sales (Q) are also the highest at Rs 510.96 crore.

With a ROE of 8.9, Jagran Prakashan currently has an attractive valuation with a 1.1 price to book value. However, the stock is trading at a premium compared to its average historical valuations. In the past year, while the stock has generated a return of 38.34%, its profits have fallen by -7.2%. The PEG ratio of the company is 0.9.

Despite the recent downgrade, Jagran Prakashan has consistently generated returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods. Investors should carefully consider these factors before making any investment decisions regarding this smallcap company in the printing and publishing industry.