MarketsMOJO Downgrades Rexnord Electronics & Controls to 'Sell' Due to Poor Long-Term Growth and Technical Trends

Rexnord Electronics & Controls, a microcap company in the consumer durables industry, has recently received a 'Sell' rating from MarketsMOJO on February 28, 2024. This downgrade is based on the company's poor long-term growth, with net sales growing at an annual rate of only 9.47% and operating profit at 17.97% over the last 5 years.
In addition, the company's recent results for December 2023 have been flat, with the lowest ROCE (HY) at 15.14% and PBT LESS OI (Q) at Rs 1.33 crore. The stock is also currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on February 28, 2024. The MACD and Bollinger Band technical factors are also Bearish, indicating a potential downward trend for the stock.

One of the few positives for Rexnord Electronics & Controls is its low debt to equity ratio (avg) of 0.05 times. However, with a ROE of 12.4, the company is fairly valued with a 2 Price to Book Value. The stock is currently trading at a premium compared to its average historical valuations.

Despite generating a return of 29.56% over the past year, the company's profits have fallen by -16.7%. This could be a cause for concern for investors, especially since the majority shareholders are promoters.

In conclusion, while Rexnord Electronics & Controls may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO and the company's poor long-term growth and technical trends may make it a risky investment for potential buyers.