MarketsMOJO Downgrades Keltech Energies to 'Sell' Rating Due to Poor Long-Term Growth and Flat Financial Results

Keltech Energies, a microcap company in the chemicals industry, has recently received a 'Sell' rating from MarketsMOJO on November 21, 2024. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of only 6.80% over the last 5 years.
In addition, the company's recent financial results for September 2024 have been flat, with the lowest DPR(Y) at 0.77% and PBDIT(Q) at Rs 7.37 crore. The operating profit to net sales (Q) is also at its lowest at 7.19%. These factors contribute to the 'Sell' rating given by MarketsMOJO.

On the positive side, Keltech Energies has a strong ability to service its debt, with a low Debt to EBITDA ratio of 0.73 times. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The stock's technical trend has also deteriorated from Mildly Bullish on November 21, 2024, and has generated a negative return of -5.87% since then.

With a ROE of 20.5, the stock is considered to have a fair valuation with a price to book value of 3.1. It is also currently trading at a discount compared to its average historical valuations. However, despite generating a return of 46.26% in the last year, the company's profits have only risen by 27.9%, resulting in a PEG ratio of 0.5.

The majority shareholders of Keltech Energies are the promoters, indicating their confidence in the company. However, the stock has underperformed the market (BSE 500) with a return of 23.25% in the last year. Overall, based on the recent downgrade by MarketsMOJO and the company's financial performance, it may be wise for investors to consider selling their shares in Keltech Energies.