MarketsMOJO Downgrades Multibase India to 'Sell' Due to Poor Growth and Financial Performance

Multibase India, a microcap company in the petrochemical industry, has recently received a 'Sell' rating from MarketsMOJO on January 24, 2024. This downgrade is based on the company's poor long-term growth, with net sales growing at an annual rate of % and operating profit declining by -20.85% over the last 5 years.
In addition, the company's recent financial results for September 2023 show a decline in net sales, with the lowest recorded at Rs 16.26 crore. Furthermore, non-operating income accounts for a significant portion of the company's profit before tax, indicating potential instability in its core operations.

One of the major concerns for investors is the company's negative operating profits, making it a risky investment compared to its historical valuations. Despite generating a return of 14.31% in the past year, the company's profits have fallen by 0%, underperforming the market (BSE 500) returns of 25.51%.

Another factor to consider is the company's low debt to equity ratio, which is below the industry average. However, the stock is currently in a mildly bullish range, with technical factors such as MACD and KST also showing a bullish trend.

It is worth noting that the majority of the company's shareholders are promoters, which may indicate a lack of interest from external investors. Overall, based on the company's financial performance and market trends, MarketsMOJO has downgraded Multibase India's stock to 'Sell'. Investors are advised to carefully consider these factors before making any investment decisions.