Macfos Receives 'Sell' Rating from MarketsMOJO, Despite Strong Growth and Low Debt

Macfos, a microcap retailing company, has recently received a 'Sell' rating from MarketsMOJO on October 21, 2024. This downgrade is based on the company's flat results in June 2024 and its expensive valuation with a ROCE of 42.8 and an enterprise value to capital employed ratio of 21.3.

Despite a 117.27% return in the past year, Macfos' profits have only increased by 47%, resulting in a PEG ratio of 1.8. Additionally, domestic mutual funds hold a mere 0% stake in the company, indicating their discomfort with the current price or business.

On a positive note, Macfos has a low debt to EBITDA ratio of 0.90 times, indicating a strong ability to service debt. The company has also shown healthy long-term growth with an annual net sales growth rate of 66.50% and operating profit growth rate of 83.41%.

However, the technical trend for Macfos is currently sideways, with no clear price momentum. The stock's RSI and Bollinger Band technical factors also reflect this sideways trend.

Despite the recent downgrade, Macfos has outperformed the market (BSE 500) with a return of 117.27% in the last year, compared to the market's return of 34.48%. As always, it is important for investors to conduct their own research and make informed decisions when it comes to investing in any company, especially a microcap like Macfos.