MarketsMOJO Downgrades Lincoln Pharmaceuticals to 'Sell' Due to Poor Growth and Bearish Trend

Lincoln Pharmaceuticals, a smallcap pharmaceutical company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on several factors, including poor long-term growth, flat results in the last quarter, and a technically bearish trend.
Over the last 5 years, the company's net sales have only grown at an annual rate of 10.27%, while operating profit has grown at a slightly lower rate of 10.12%. In addition, the company's cash and cash equivalents were at their lowest at Rs 13.83 crore in the last quarter, and non-operating income accounted for 35.31% of the profit before tax.

From a technical standpoint, the stock is currently in a mildly bearish range, with the trend deteriorating from mildly bullish on November 11, 2024. The RSI and Bollinger Band technical factors also indicate a bearish trend.

Furthermore, the stock has underperformed the market in the last year, with a return of only 10.63% compared to the market's return of 30.30%. However, the company does have a low debt to equity ratio and an attractive valuation with a price to book value of 2.2. It is worth noting that the stock is currently trading at a premium compared to its average historical valuations.

In terms of institutional investors, there has been an increase in their stake by 1.2% in the previous quarter, with a collective holding of 5.19% in the company. This suggests that these investors, who have better resources and capabilities to analyze company fundamentals, may also have a negative outlook on the stock.

Overall, based on the current information and analysis, MarketsMOJO has downgraded its stock call on Lincoln Pharmaceuticals to 'Sell'. Investors should carefully consider these factors before making any decisions regarding this smallcap pharmaceutical company.