MarketsMOJO Downgrades Narmada Gelatines to 'Sell' Due to Slow Growth and Decreasing Profits

Narmada Gelatines, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on May 21, 2024. This decision was based on several factors, including poor long-term growth and flat results in December 2023.
According to MarketsMOJO, Narmada Gelatines has shown a slow growth rate of 8.40% in net sales over the last 5 years. In addition, the company's profits have decreased by 28.18% in the last half-year. These factors contribute to the stock being in a mildly bearish range, as indicated by technical indicators such as MACD, Bollinger Band, KST, and DOW.

Another factor to consider is the company's low debt to equity ratio, which is currently at 0 times. However, with a return on equity of 14.9%, Narmada Gelatines is fairly valued with a price to book value of 2.3. It is worth noting that the stock is currently trading at a premium compared to its average historical valuations.

In the past year, Narmada Gelatines has generated a return of 27.11%, while its profits have only increased by 6.2%. This results in a PEG ratio of 2.5, indicating that the stock may be overvalued.

It is also important to note that the majority of the company's shares are held by promoters. This means that the company's management has a significant stake in the company's success.

Overall, based on the above factors, MarketsMOJO has downgraded Narmada Gelatines to a 'Sell'. Investors should carefully consider these factors before making any investment decisions.