MarketsMOJO Downgrades Syncom Formulations (India) to 'Sell' Due to Poor Long-Term Growth and Negative Results

Syncom Formulations (India), a smallcap pharmaceutical company, has recently been downgraded to a 'Sell' by MarketsMOJO on February 26, 2024. This decision was based on the company's poor long-term growth, as its net sales have only grown by an annual rate of 8.39% and operating profit at 13.67% over the last 5 years.
In addition, the company has declared negative results for the last 4 consecutive quarters, with net sales and PAT (profit after tax) showing a significant decline. Non-operating income also makes up a large portion of the company's profit before tax, which may be a cause for concern.

Furthermore, Syncom Formulations (India) has a very expensive valuation with a price to book value of 5.2 and a ROE (return on equity) of 8.7. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite being a smallcap company, domestic mutual funds hold only 0% of the company, which could indicate that they are not comfortable with the current price or the business itself. On the other hand, the company does have a low debt to equity ratio, which is a positive factor.

Technically, the stock is in a mildly bullish range and its MACD and KST technical factors are also bullish. In terms of performance, Syncom Formulations (India) has outperformed the BSE 500 in the long term as well as the near term, with a return of 128.59% in the last year.

In conclusion, while Syncom Formulations (India) may have some positive factors such as low debt and market-beating performance, the company's poor long-term growth and negative results may be a cause for concern for potential investors. MarketsMOJO's downgrade to 'Sell' should be taken into consideration before making any investment decisions.