Jeevan Scientific Technology Downgraded to 'Sell' by MarketsMOJO: Poor Long-Term Growth and Flat Results Raise Concerns

Jeevan Scientific Technology, a microcap pharmaceutical and drug company, has recently been downgraded to a 'Sell' by MarketsMOJO on February 5th, 2024. This decision was based on several factors, including poor long-term growth and flat results in September 2023.
One of the main reasons for the downgrade is the company's poor long-term growth. Over the last 5 years, Jeevan Scientific Technology's operating profit has declined by an annual rate of -213.67%. This is a concerning trend for investors, as it indicates a lack of sustainable growth.

In addition, the company's recent results in September 2023 were flat, which is not a positive sign for future performance. The stock is also considered risky due to its negative operating profits and trading at a higher risk compared to its historical valuations.

Furthermore, Jeevan Scientific Technology has underperformed the market in the last year, with a return of only 17.52% compared to the market's return of 31.75%. This is a significant difference and may be a cause for concern for investors.

On the other hand, the company does have a strong ability to service debt, with a low Debt to EBITDA ratio of 0.86 times. This indicates that the company is in a good financial position to handle its debt obligations.

From a technical standpoint, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. However, this may not be enough to offset the other concerning factors mentioned above.

It is also worth noting that the majority of Jeevan Scientific Technology's shareholders are non-institutional investors. This may indicate a lack of confidence from larger, more experienced investors.

In conclusion, while Jeevan Scientific Technology may have some positive aspects, such as its ability to service debt and current technical trend, the overall outlook for the company is not favorable. Investors should carefully consider these factors before making any decisions regarding this microcap stock.