Jindal Drilling & Industries Downgraded to 'Sell'

Jindal Drilling & Industries, a smallcap company in the oil exploration and refineries industry, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's negative financial results for the past three quarters, with a decline in profits by -44.73% and a high interest expense of Rs 3.98 crore.
Moreover, the company's return on equity (ROE) stands at a low 5.1, making its valuation expensive with a price to book value of 1.6. Despite the stock trading at a discount compared to its historical valuations, its profits have also fallen by -40% in the past year, despite generating a return of 155.69%.

Another concerning factor is that domestic mutual funds hold only 0% of the company, indicating their discomfort with either the stock's price or its business. This is surprising given the company's healthy long-term growth, with an annual operating profit growth rate of 223.72%.

Technically, the stock is currently in a mildly bullish range, with multiple indicators such as MACD, Bollinger Band, and KST showing a bullish trend. However, the stock has consistently outperformed the BSE 500 index in the last three years, generating a return of 155.69%.

In conclusion, while Jindal Drilling & Industries may have potential for long-term growth, its current financial performance and valuation make it a risky investment. Investors should carefully consider all factors before making any decisions regarding this smallcap company in the oil exploration and refineries industry.