MarketsMOJO Downgrades Creative Castings to 'Sell' Rating Due to Weak Long-Term Fundamentals

Creative Castings, a microcap company in the castings and forgings industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a 13.63% CAGR growth in operating profits over the last 5 years. Additionally, the company's results for December 2023 were flat, with the lowest EPS(Q) at Rs 7.92.
Other factors contributing to the 'Sell' rating include the stock being technically in a mildly bullish range, with its MACD and KST technical factors also being bullish. The company's ROE of 12.6 indicates a fair valuation with a price to book value of 2.8. However, the stock is currently trading at a premium compared to its average historical valuations.

Despite the stock generating a return of 55.62% in the last year, its profits have only risen by 9.3%, resulting in a PEG ratio of 2.4. It is also worth noting that the majority shareholders of Creative Castings are the promoters.

While the stock has outperformed the market (BSE 500) with a return of 55.62% in the last year, it is important to consider the company's weak long-term fundamentals before making any investment decisions. MarketsMOJO's 'Sell' rating serves as a cautionary reminder for investors to carefully evaluate the company's financial performance before investing in Creative Castings.