Kovilpatti Lakshmi Roller Flour Mills Downgraded to 'Sell' by MarketsMOJO Due to Negative Financial Performance

Kovilpatti Lakshmi Roller Flour Mills, a microcap company in the FMCG industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 16, 2024. This decision was based on the company's negative financial results for the past four consecutive quarters. The company's PAT(Q) has fallen by -201.1% at Rs -2.30 crore and its INTEREST(HY) has grown by 24.89% at Rs 5.62 crore. Additionally, its ROCE(HY) is at its lowest at 13.52%.
Technically, the stock is in a Mildly Bearish range and has deteriorated from Mildly Bullish on September 16, 2024, generating only 2.19% returns since then. The key technical factor, MACD, has been Bearish since September 16, 2024.

In the last year, the stock has underperformed the market with a return of only 7.10%, compared to the market's (BSE 500) returns of 34.97%. However, the company has shown high management efficiency with a ROCE of 15.61% and a healthy long-term growth rate of 54.31% in operating profit.

With a ROCE of 25.2, the stock is fairly valued with a 1.6 Enterprise value to Capital Employed. It is also currently trading at a discount compared to its average historical valuations. However, in the past year, while the stock has generated a return of 7.10%, its profits have fallen by -73.1%.

The majority shareholders of Kovilpatti Lakshmi Roller Flour Mills are the promoters of the company. Overall, the recent downgrade to 'Sell' by MarketsMOJO is a reflection of the company's negative financial performance and underperformance in the market. Investors should carefully consider these factors before making any investment decisions regarding this microcap FMCG company.