MarketsMOJO Downgrades Rama Phosphates to 'Sell' Due to Poor Growth and Negative EBITDA

Rama Phosphates, a microcap company in the fertilizer industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 22, 2024. This decision was based on the company's poor long-term growth, flat results in the most recent quarter, and negative EBITDA.
Over the past 5 years, Rama Phosphates has seen a decline in its operating profit, with an annual growth rate of -1.22%. In the most recent quarter, the company's DPR (Y) was at its lowest at 0.00%, and its net sales and PAT have also seen a decline of -21.31%. This has led to a negative EBITDA, making the stock a risky investment compared to its historical valuations.

In the past year, while the stock has generated a return of -12.99%, its profits have fallen by -195.4%. Additionally, Rama Phosphates has consistently underperformed against the benchmark BSE 500 index in the last 3 years.

However, the company does have some positive factors, such as a high management efficiency with a ROCE of 19.67% and a low debt to EBITDA ratio of 0.84 times, indicating a strong ability to service debt. Technically, the stock is in a mildly bullish range, with its MACD and KST technical factors also being bullish.

It is worth noting that the majority shareholders of Rama Phosphates are the promoters, which may impact the company's decision-making and direction. Overall, considering the current state of the company and its performance, MarketsMOJO has downgraded the stock to a 'Sell' recommendation.