Jamna Auto Industries Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth and Technical Deterioration

Jamna Auto Industries, a smallcap company in the auto ancillary industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 17, 2024. This decision was based on the company's poor long-term growth, with net sales only growing at an annual rate of 3.81% and operating profit at 2.98% over the last 5 years. In addition, the company's net sales for the quarter ending in June 2024 were at their lowest at Rs 557.14 crore.
The stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on October 14, 2024. The MACD and KST technical factors are also Bearish, indicating a downward trend for the stock.

In terms of performance, Jamna Auto Industries has underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of -3.84% in the last year. However, the company does have a high management efficiency with a ROE of 18.17% and a strong ability to service debt with a low Debt to EBITDA ratio of 0.52 times.

The stock is currently trading at a premium compared to its average historical valuations, with a Price to Book Value of 5.4 and a ROE of 22.7. While the stock has generated a return of -3.84% in the past year, its profits have risen by 16.8%, resulting in a PEG ratio of 1.4.

It is worth noting that the majority shareholders of Jamna Auto Industries are the promoters themselves. Overall, the company's recent downgrade to 'Sell' by MarketsMOJO is a reflection of its below par performance in both the long-term and near-term. Investors should carefully consider these factors before making any investment decisions.