MarketsMOJO Downgrades Black Rose Industries Due to Poor Long-Term Growth and Expensive Valuation

Black Rose Industries, a microcap textile company, has recently received a 'Sell' rating from MarketsMOJO on September 2, 2024. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of -15.92% over the last 5 years. Additionally, the company's ROE of 14.6 indicates an expensive valuation with a price to book value of 4.9.
Despite its size, domestic mutual funds hold only 0.01% of the company, which could suggest that they are not comfortable with the current price or the business itself. The company has also consistently underperformed against the benchmark over the last 3 years, with a -3.18% return in the last year and underperformance against BSE 500 in each of the last 3 annual periods.

On a positive note, Black Rose Industries has a strong ability to service debt with a low debt to EBITDA ratio of 0.29 times. The company has also declared positive results for the last 4 consecutive quarters, with a 77.82% growth in PAT (HY). However, the technical trend for the stock is currently sideways, indicating no clear price momentum.

Investors should take note of these factors before making any decisions regarding Black Rose Industries stock. While the company has shown some positive results, its overall performance and valuation may not be favorable for long-term growth.