MarketsMOJO Downgrades Mayur Floorings to 'Sell'

Mayur Floorings, a microcap company in the mining and minerals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 7, 2023. This decision was based on the company's weak long-term fundamental strength, with a -1.23% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 0.11.
In terms of profitability, Mayur Floorings has only been able to generate a Return on Equity (avg) of 0.64%, indicating low profitability per unit of shareholders' funds. This was reflected in the company's flat results in September 2023 and its underperformance in the market over the last year, with a return of only 2.61% compared to the market's 16.72% (BSE 500).

From a technical standpoint, the stock is currently in a bullish range, with the technical trend improving from Mildly Bullish on December 6, 2023. However, since then, it has only generated a return of -4.92%. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are currently bullish for the stock.

With a ROCE of -1.2, Mayur Floorings is currently fairly valued with a 1.2 Enterprise value to Capital Employed. However, the stock is trading at a discount compared to its average historical valuations. Over the past year, while the stock has generated a return of 2.61%, its profits have actually fallen by -2%.

It is worth noting that the majority of shareholders in Mayur Floorings are non-institutional investors. This may indicate a lack of confidence in the company's performance and future potential. Overall, MarketsMOJO's downgrade to 'Sell' for Mayur Floorings is based on factual data and signals caution for potential investors.