Jainex Aamcol Receives 'Sell' Rating from MarketsMOJO

Jainex Aamcol, a microcap engineering company, has recently received a 'Sell' rating from MarketsMOJO on August 3rd, 2023. This downgrade is based on the company's weak long-term fundamental strength, with a 14.66% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.36.
In the recent quarter, Jainex Aamcol's results have been flat and its ROCE (HY) is at its lowest at 13.18%. The stock has also underperformed the market in the last year, with a return of only 2.11%, compared to the market's (BSE 500) return of 16.72%.

From a technical standpoint, the stock is currently in a mildly bullish range and has shown improvement since October 23rd, 2023, generating a return of 6.63%. The key technical factor, MACD, has also been bullish since October 23rd.

Despite its attractive valuation with a ROCE of 13.4 and a 2.6 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its average historical valuations. However, in the past year, while the stock has generated a return of 2.11%, its profits have fallen by -58.4%.

It is worth noting that the majority shareholders of Jainex Aamcol are the promoters themselves. This may raise concerns for potential investors, as the promoters may have a significant influence on the company's decisions and direction.

Overall, with the recent 'Sell' rating from MarketsMOJO and the company's weak financial performance, it may be wise for investors to approach Jainex Aamcol with caution.