MarketsMOJO Downgrades Ruby Mills to 'Sell' Due to Weak Fundamentals and High Debt

On August 1, 2024, MarketsMOJO downgraded the stock call on Ruby Mills to 'Sell'. This decision was based on several factors, including weak long-term fundamental strength, poor growth in net sales and operating profit, and a high debt to EBITDA ratio. Additionally, the company's ROCE of 6.4 indicates an expensive valuation, and it is currently trading at a discount compared to its historical valuations.
Despite its size, domestic mutual funds hold only 0% of the company, which could suggest that they are not comfortable with the current price or the business itself. In the last year, the stock has underperformed the market, generating a return of only 10.62% compared to the market's 37.25% return.

However, there are some positive factors to consider, such as the company's recent positive results in March 2024. Net sales have grown at a rate of 22.2%, and PBDIT and PBT LESS OI have reached their highest levels. Technically, the stock is in a mildly bullish range, with multiple factors indicating a bullish trend, including MACD, Bollinger Band, KST, and OBV.

Overall, while there are some positive aspects to Ruby Mills, the current data and analysis suggest that it may be a good time to sell the stock. Investors should carefully consider all factors before making any decisions.