MarketsMOJO Downgrades Captain Polyplast to 'Sell' Due to Weak Fundamentals and High Debt

Captain Polyplast, a microcap company in the plastic products industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a low CAGR growth of 2.15% in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 3.66 times, indicating a low ability to service debt.
In the latest quarter, the company's operating profit to interest ratio was at its lowest at 2.37 times, and its PAT has fallen by -15.3%. The debtors turnover ratio for the half-year was also at its lowest at 1.67 times. These factors contribute to the 'Sell' rating for Captain Polyplast.

On the technical side, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and DOW showing bullish signals. However, the company's ROCE of 15.2 and attractive valuation with a 2.5 enterprise value to capital employed ratio may not be enough to offset the weak fundamental performance.

Despite generating a return of 177.02% in the past year, the company's profits have only risen by 81.2%, resulting in a PEG ratio of 0.4. This indicates that the stock is trading at a discount compared to its average historical valuations.

In the long term, Captain Polyplast has shown market-beating performance, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, with the recent downgrade from MarketsMOJO, investors may want to carefully consider their investment in this microcap company in the plastic products industry.