MarketsMOJO Downgrades Hexa Tradex to 'Sell' Due to Debt and Profitability Challenges

After a strong run in the past year, MarketsMOJO has downgraded its stock call on Hexa Tradex to 'Sell'. The trading company, which falls under the smallcap category, has been facing challenges in servicing its debt with a high Debt to EBITDA ratio of -1.00 times. This has also resulted in a low profitability per unit of shareholders' funds, with a Return on Equity (avg) of 0.26%.
In addition, the company's recent financial results have been negative, with a decline in net sales and profits in the last quarter. The net sales for the past 9 months have decreased by -57.37%, while the profits have fallen by -51.31%. The PBT LESS OI(Q) has also seen a significant decline of -115.2%.

The stock is currently trading at a discount compared to its historical valuations, with a price to book value of 0.4. However, its ROE of 2.4 indicates a very expensive valuation. Despite generating a return of 85.04% in the past year, the company's profits have fallen by -34.5%.

On the positive side, Hexa Tradex has shown healthy long-term growth with an annual growth rate of 153.31% in net sales and 148.33% in operating profit. Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend.

However, MarketsMOJO's downgrade is based on the company's inability to service its debt and its low profitability. The stock has also underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, despite its strong performance in the past year. Investors should carefully consider these factors before making any investment decisions regarding Hexa Tradex.