Jaiprakash Power Ventures Receives 'Sell' Rating

Jaiprakash Power Ventures, a midcap company in the power industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a -4.85% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 7.48 times, indicating a low ability to service debt.
In the latest quarter, the company's operating cash flow was at its lowest at Rs 767.44 crore and its profits have fallen by -29.23%. The return on equity (avg) is also low at 1.25%, showing a low profitability per unit of shareholders' funds. Furthermore, 79.2% of the promoter shares are pledged, which can put additional downward pressure on the stock prices in falling markets.

On the positive side, the stock is technically in a mildly bullish range and has multiple bullish factors such as MACD, Bollinger Band, and KST. It also has an attractive valuation with a ROCE of 4.8 and a 0.9 enterprise value to capital employed. The stock is currently trading at a discount compared to its average historical valuations.

However, investors should note that while the stock has generated a return of 80.70% in the past year, its profits have fallen by -98.8%. On a brighter note, the stock has consistently outperformed the BSE 500 index in the last 3 annual periods.

Overall, the downgrade to 'Sell' by MarketsMOJO highlights the weak performance and financial health of Jaiprakash Power Ventures. Investors should carefully consider these factors before making any investment decisions.