MarketsMOJO Downgrades Parshva Enterprises to 'Sell' Due to Weak Fundamentals and Growth

Parshva Enterprises, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, poor growth, and inability to service its debt.
According to MarketsMOJO, Parshva Enterprises has an average Return on Equity (ROE) of 2.07%, indicating weak long-term fundamental strength. The company's operating profit has only grown at an annual rate of 0.99% over the last 5 years, showing poor long-term growth. Additionally, the company's EBIT to Interest (avg) ratio is at a low 0.23, indicating its weak ability to service its debt.

Furthermore, with a ROCE of 3.7, Parshva Enterprises is considered to have a very expensive valuation with a 16.3 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated a return of 10.21%, its profits have actually fallen by 0%. This underperformance is also reflected in the stock's lower return compared to the market (BSE 500) returns of 26.92% in the last year.

On a positive note, Parshva Enterprises has shown growth in its Dec 23 results, with a 36.74% increase in net sales and the highest PBDIT(Q) and PBT LESS OI(Q) at Rs 0.14 cr and Rs 0.11 cr, respectively.

Technically, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend.

It is important to note that the majority shareholders of Parshva Enterprises are its promoters.

Overall, based on the recent downgrade by MarketsMOJO and the company's weak long-term fundamentals and growth, it may be wise for investors to consider selling their stock in Parshva Enterprises.