MarketsMOJO Downgrades Asian Granito India to 'Sell' Due to Weak Fundamentals and Debt Concerns

Asian Granito India, a leading player in the ceramics, marble, granite, and sanitaryware industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a -197.91% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.51.
The company's performance has been below par in both the long-term and near-term, with -11.38% returns in the last 1 year and underperformance compared to BSE 500 in the last 3 years, 1 year, and 3 months. However, there have been some positive results in September 2024, with the company reporting its highest PAT(Q) at Rs 6.49 crore and EPS(Q) at Rs 0.51.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated since November 26, 2024, when it was mildly bullish, and has generated -0.54% returns since then.

On a positive note, the stock has a very attractive valuation with a ROCE of 0.1 and an enterprise value to capital employed ratio of 0.8. It is also trading at a discount compared to its average historical valuations. However, despite a 99.7% increase in profits over the past year, the stock has generated a return of -11.38%. Based on these factors, MarketsMOJO has downgraded its stock call on Asian Granito India to 'Sell'.