MarketsMOJO Downgrades M K Exim (India) to 'Sell' Amid Negative Financial Results

M K Exim (India), a microcap textile company, has recently been downgraded to a 'Sell' by MarketsMOJO on April 15, 2024. This decision was based on the company's negative financial results in December 2023, with a significant decrease in net sales and a slight decline in profits. The company's return on capital employed (ROCE) has also reached its lowest point at 32.17%.
Technically, the stock is currently in a mildly bearish range, with a deteriorating trend since April 15, 2024, resulting in a -3.77% return. Multiple indicators such as RSI, MACD, Bollinger Band, and KST suggest a bearish outlook for the stock.

Moreover, with a ROE of 21.2, the stock is currently trading at an expensive valuation with a price to book value of 4. This is higher than its average historical valuations, indicating a premium price for the stock. Although the stock has generated a return of 29.51% in the past year, its profits have only increased by 0.3%, resulting in a high PEG ratio of 15.8.

On a positive note, the company has a low debt to equity ratio of 0.06 times, indicating a healthy financial position. Additionally, M K Exim (India) has shown strong long-term growth with an annual growth rate of 35.19% in net sales and 81.87% in operating profit.

It is worth noting that the majority of the company's shareholders are non-institutional investors, which may affect the stock's performance in the future. Overall, considering the recent downgrade and various bearish indicators, it may be wise for investors to approach M K Exim (India) with caution.