MarketsMOJO Downgrades Rishi Laser to 'Sell' Due to Weak Fundamentals and Market Trends

Rishi Laser, a microcap company in the engineering and industrial equipment industry, has recently received a 'Sell' rating from MarketsMOJO on May 9, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 0%. Additionally, the company has shown poor long-term growth, with a minimal annual growth rate of 0.18% in net sales over the last 5 years. Furthermore, Rishi Laser's ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of 0.
Other factors contributing to the 'Sell' rating include the company's consistently positive results for the last 7 quarters, with the highest ROCE (HY) at 13.55%, INVENTORY TURNOVER RATIO (HY) at 14.94 times, and DEBTORS TURNOVER RATIO (HY) at 8.64 times. However, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend.

At a ROCE of 11.5, Rishi Laser is fairly valued with a 1.6 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. While the stock has generated a return of 190.04% in the past year, its profits have only risen by 102.3%, resulting in a low PEG ratio of 0.2.

The majority of Rishi Laser's shareholders are non-institutional, and the company has consistently provided returns over the last 3 years. In fact, the stock has outperformed BSE 500 in each of the last 3 annual periods, making it a consistent performer in the market. However, based on the current financial data and market trends, MarketsMOJO has downgraded Rishi Laser's stock to 'Sell'.