MarketsMOJO Downgrades Mangalam Seeds to 'Sell' After Negative Financial Results.

Mangalam Seeds, a microcap company in the agri-seeds industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 1, 2024. This decision was based on the company's negative financial results in March 2024, after six consecutive quarters of positive performance. The company's profit after tax has fallen by 50%, with the lowest operating profit to interest ratio and the highest debt-to-equity ratio in the last half year.
In addition, Mangalam Seeds has underperformed the market in the past year, with a return of only 21.22% compared to the market's 37.64%. However, the company does have a strong ability to service debt, with a low debt-to-EBITDA ratio of 1.27 times. It also has a healthy long-term growth rate, with an annual operating profit growth of 41.12%.

The technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has deteriorated since July 1, 2024, with a return of 4.25% since then. However, the company does have an attractive valuation with a ROCE of 15.9 and an enterprise value to capital employed ratio of 2.8. The stock is also trading at a discount compared to its historical valuations.

It is worth noting that the majority shareholders of Mangalam Seeds are the promoters themselves. While the stock has generated a return of 21.22% in the past year, its profits have only risen by 19.1%, resulting in a PEG ratio of 1.1. Overall, MarketsMOJO's downgrade to 'Sell' for Mangalam Seeds is based on the company's recent negative financial performance and underperformance in the market.