MarketsMOJO Downgrades Regis Industries to 'Sell' Due to Weak Fundamentals and Negative EBITDA

Regis Industries, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on October 21, 2024. This downgrade is based on the company's weak long-term fundamental strength, as it has been experiencing operating losses and poor growth with an annual rate of -52.71% in operating profit.
One of the main reasons for this 'Sell' call is the company's negative EBITDA, which makes the stock a risky investment compared to its historical valuations. Despite generating a return of 76.57% in the past year, the company's profits have fallen by -97%.

However, there are some positive factors to consider. In June 2024, Regis Industries reported a growth of 100.90% in net sales for the last 9 months. Additionally, the stock is currently in a bullish range, with technical indicators such as MACD, Bollinger Band, KST, DOW, and OBV all showing positive signs.

It is worth noting that the majority of the company's shareholders are non-institutional investors. This could potentially lead to higher volatility in the stock price.

Despite consistent returns over the last 3 years, outperforming the BSE 500 index, MarketsMOJO's downgrade to 'Sell' suggests caution for potential investors. With a weak long-term outlook and negative EBITDA, it may be wise to wait for the company to show signs of improvement before considering investing in Regis Industries.