MarketsMOJO Downgrades Glittek Granites to 'Sell'

Glittek Granites, a microcap company in the ceramics and allied industry, has recently received a 'Sell' rating from MarketsMOJO on December 8, 2023. This downgrade is based on the company's weak long-term fundamental strength, as it has been reporting operating losses and has a high debt to EBITDA ratio of 15.40 times. Additionally, the company has also reported negative return on equity.
In terms of technical factors, the stock is currently in a mildly bullish range and both the MACD and KST indicators are also showing bullish signals. However, with a ROCE of only 1.3, the stock is considered to have an attractive valuation with an enterprise value to capital employed ratio of 1.

Despite the stock's recent performance, it is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 21.00%, while its profits have increased by 53.5%. The majority shareholders of Glittek Granites are the promoters of the company.

One positive aspect of the company is its consistent returns over the last 3 years. In addition to outperforming the BSE 500 index in the last 1 year, the stock has also outperformed it in each of the last 3 annual periods. However, considering the current financial situation of the company, MarketsMOJO has downgraded its stock call to 'Sell'. Investors are advised to carefully evaluate the company's financials before making any investment decisions.