Likhitha Infrastructure Downgraded to 'Sell' by MarketsMOJO, Technical Trend Sideways

Likhitha Infrastructure, a smallcap company in the capital goods industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 22, 2024. This decision was based on several factors, including flat results in June 2024 and a low ROCE (return on capital employed) of 29.41%. Additionally, the company's ROE (return on equity) of 21.2% indicates an expensive valuation with a price to book value of 4.5.
Despite generating a return of 8.78% in the past year, Likhitha Infrastructure's profits have only increased by 6.7%, resulting in a high PEG (price/earnings to growth) ratio of 3.1. This underperformance in the market, with BSE 500 returns of 31.91%, is another factor contributing to the 'Sell' rating.

On a positive note, the company has a low debt to equity ratio and has shown healthy long-term growth with an annual net sales growth rate of 27.05% and operating profit growth rate of 18.35%. However, the technical trend for the stock is currently sideways, indicating no clear price momentum.

Institutional investors have also shown an increasing interest in Likhitha Infrastructure, with a 0.84% increase in their stake in the company over the previous quarter. These investors have the resources and capabilities to analyze the fundamentals of companies, making their participation a significant factor to consider.

Overall, based on the current information and data, it is recommended to approach Likhitha Infrastructure's stock with caution and do thorough research before making any investment decisions.