MarketsMOJO Downgrades N G Industries to 'Sell' Due to Weak Fundamentals and Debt Concerns

N G Industries, a microcap healthcare services company, has recently been downgraded to a 'Sell' by MarketsMOJO on July 9th, 2024. This decision was based on the company's weak long-term fundamental strength, with a -11.53% 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 1.61.
In the recent quarter, N G Industries reported flat results with a PAT (9M) of Rs 3.01 crore, which has seen a decline of -59.60% compared to the previous year. Furthermore, the non-operating income for the quarter was 82.74% of the company's profit before tax (PBT).

While the stock is technically in a mildly bullish range, there are multiple factors that suggest a bullish trend, such as the MACD, Bollinger Band, and KST. The company also has an attractive valuation with a ROE of 17.9 and a price to book value of 2.

However, it is worth noting that the stock is currently trading at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 35.22%, but its profits have fallen by -39.4%.

N G Industries is primarily owned by its promoters, who hold the majority of the company's shares. As a microcap company in the healthcare services industry, it is important for investors to carefully consider the company's financial performance and future prospects before making any investment decisions.