Manaksia Aluminium Company Downgraded to 'Sell' by MarketsMOJO on Weak Fundamentals and Underperformance

Manaksia Aluminium Company, a microcap company in the non-ferrous metal industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 5th, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Capital Employed (ROCE) of 6.14%, poor long-term growth with only a 9.06% annual growth in net sales over the last 5 years, and a high Debt to EBITDA ratio of 5.42 times, indicating a low ability to service debt.
In addition, the company's results for March 2024 were flat and its interest expenses have grown by 20.03% in the last 9 months. The stock has also underperformed the market in the last year, with a return of only 14.95% compared to the market's 32.89% return.

Technically, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. However, with an ROCE of 8.5, the stock is currently trading at an attractive valuation with a 1.3 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

It is worth noting that while the stock has generated a return of 14.95% in the last year, its profits have actually fallen by -26.8%. The majority shareholders of Manaksia Aluminium Company are the promoters, indicating a strong control over the company's operations and decisions.